Jakarta. Indonesian retailers have no interest in sourcing products directly from Chinese factories that claim to be original equipment manufacturers (OEMs) for major global fashion and accessories brands -- even if the prices are exceptionally low, the national retail association said on Wednesday.

As trade tensions between China and the United States escalate, a growing number of social media posts have showcased the craftsmanship of Chinese factories purportedly supplying luxury labels such as Lululemon, Chanel, and Hermès. These posts often claim the factories are now selling products directly to consumers under their own brands at a fraction of retail prices.

However, many of these claims remain unverifiable, and it is unclear whether the video creators are truly OEMs for these high-end brands.

“It’s simply not possible to sell foreign products in Indonesia without going through authorized distributors, who must cooperate with local associations to enter the Indonesian market,” said Budihardjo Iduansjah, chairman of the Indonesian Retailers and Shopping Mall Lessees Association (Hippindo).

He warned that selling products directly from Chinese OEMs could potentially violate intellectual property rights.

“Even if some well-known US brands do source their goods from Chinese factories, those factories cannot claim the products as original or sell them under the same branding without authorization,” Budihardjo said.

He stressed that Indonesian consumers are buying into the brand -- not just the product itself -- and that genuine luxury items come at a premium due to brand licensing and intellectual property costs.

“Unless those Chinese manufacturers create and market their own brands, there’s no legal or ethical basis for reselling the products in Indonesia under global brand names,” he added.

Budihardjo also reaffirmed Hippindo’s commitment to rejecting counterfeit products. “Let’s be clear -- we do not and will not support the sale of counterfeit goods. Our members are not allowed to distribute them,” he said.

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