Jakarta. The government will take firm action against illegal importers of used clothing by blacklisting those involved in smuggling and trade violations, Finance Minister Purbaya Yudhi Sadewa said on Wednesday, adding that authorities have already identified the key players behind the illicit trade.

“We know who the players are,” he said. “Anyone who has ever been involved in used clothes smuggling will be blacklisted; they won’t be allowed to import goods again.”

Used clothing smuggled into Indonesia often ends up in local thrift stores, where it is sold at low prices. The trade has drawn criticism for undermining local small businesses and the domestic textile industry, which has been struggling to compete with cheap imported products.

Purbaya said administrative sanctions such as blacklisting would serve as a complement to criminal prosecution, ensuring that violators lose access to their trade licenses and business privileges. 

The government also plans to enhance real-time digital monitoring of imports through the National Single Window Agency (LNSW), integrating data between the Directorate General of Customs and Excise and the Directorate General of Taxes. The system will help detect suspicious trade activities such as under-invoicing and unreported imports.

“This initiative is part of our state revenue reform, which focuses not only on taxation but also on tighter supervision of cross-border trade,” Purbaya said. “We will strengthen LNSW, Customs, and Tax systems from end to end. Once all are connected, we can boost revenue and completely eliminate dishonest practices.”

Indonesia’s textile and apparel (TPT) industry has faced a wave of mass layoffs in recent years, particularly in 2024 and 2025, leading to tens of thousands of job losses and dozens of factory closures. According to the Indonesian Filament and Fiber Producers Association (Apsyfi), around 60 factories shut down between 2022 and 2024, resulting in the loss of about 250,000 jobs.

Sritex Group, the country’s largest textile manufacturer, laid off more than 11,000 employees between August 2024 and March 2025 after declaring bankruptcy.

The import of used clothing has been banned under Trade Ministerial Regulation No. 40 of 2022, which amends Regulation No. 18 of 2021 on prohibited export and import goods. The rule aligns with the 2014 Trade Law, which prohibits used imports to protect public health, safety, and the domestic business climate.