Indonesia Grapples with Surge in Used Clothing and Footwear Imports

Concerns Over Cheap Imports from China

Indonesia is experiencing a significant influx of used clothing and footwear imports, with China being a primary source of these goods ¹

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Source 2

https://finance.detik.com/berita-ekonomi-bisnis/d-8210779/purbaya-duga-pakaian-bekas-yang-banjiri-ri-berasal-dari-china

. Finance Minister Purbaya Yudhi Sadewa suspects that a substantial portion of the used clothing imports come from China and other developed nations, noting that the quality of these imports remains high despite being second-hand ¹

Source 1

https://finance.detik.com/industri/d-8209640/sederet-keluhan-pengusaha-soal-sepatu-impor-china-gempur-ri

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Impact on Local Industries

The surge in imports is causing concern among local manufacturers, particularly in the footwear sector. David Chalik, Chairman of the Indonesian Footwear Entrepreneurs Association (HIPAN), reported that the local market is being flooded with cheap Chinese footwear, priced as low as Rp 75,000 per pair ²

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Allegations of Dumping Practices

Local manufacturers are accusing China of engaging in dumping practices, citing the unusually low prices of Chinese footwear. David Chalik attempted to replicate the production of similar shoes through Alibaba but was unable to match the price point of Rp 75,000 per pair, strengthening suspicions of unfair trade practices ²

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Government Response

The Indonesian government is taking steps to address the issue. The Ministry of Finance is cracking down on illegal used clothing imports and considering measures to restrict or ban certain imports. Purbaya mentioned that the government is serious about curbing the influx of used clothing, which is seen as a threat to local textile and apparel industries ¹

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Economic and Trade Implications

The influx of cheap imports from China is not only affecting local manufacturers but also raising broader concerns about Indonesia's trade balance and economic stability. The government faces the challenge of balancing consumer interests with the need to protect domestic industries.