Jakarta. The influx of illegally imported used clothing is causing serious harm to Indonesia’s economy and environment, posing a threat of mass layoffs in the domestic textile industry while worsening the country’s growing waste crisis, an economist said on Tuesday.

Executive Director of the Institute for Development of Economics and Finance (Indef), Esther Sri Astuti, said the circulation of smuggled secondhand clothes has eroded the local textile market and put at risk an estimated 520,000 factory workers who could lose their jobs due to shrinking domestic sales.

“Importers only sell around 20 percent of what they bring in -- the rest ends up as waste,” Esther said, noting that most of these unsold clothes are made of synthetic materials that do not decompose easily. “If the piles of used clothing continue to grow, bacteria can’t break them down quickly -- it takes a very long time.”

She added that the illegal trade not only threatens jobs but also deprives the state of tax revenue.

Esther urged the government to tighten border surveillance, pointing out that Indonesia’s many ports provide entry points for smuggled goods. She recommended imposing heavy fines and permanent import bans on those found guilty of illegal trade.

The economist also acknowledged that domestic textile producers face their own challenges -- particularly weak competitiveness despite modernized equipment and improved product quality.

“Industry players have told me that even with new machinery and good-quality products, they still can’t lower prices enough to compete,” she said.

Esther called for stronger protection of Indonesia’s textile sector and decisive action against the illegal import of secondhand clothing, describing it as essential to safeguard jobs and address mounting environmental concerns.

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