Jakarta. Finance Minister Purbaya Yudhi Sadewa has called for an overhaul of Indonesia’s digital trade monitoring system after finding the National Single Window (LNSW) platform remains poorly integrated across government agencies, hampering efforts to detect illegal imports and under-invoicing.

During an inspection of the LNSW system on Tuesday, Purbaya said he found several agencies’ databases disconnected from the central platform, which was designed to track import and export activities in real time.

“I saw some systems still not linked to the LNSW. I’ll work on improving the IT integration so all trade data can be consolidated,” he told reporters.

Purbaya said the system should ideally serve as the Finance Ministry’s digital intelligence hub, allowing authorities to identify discrepancies and potential manipulation in trade declarations quickly.

“I want the LNSW to function as an IT intelligence center, so I can see what goods come in and out and compare the data instantly,” he added.

He acknowledged the system’s current limitations and pledged to connect it with databases from the Customs Directorate General and other relevant institutions. The reform, he said, is crucial to closing loopholes that enable smuggling and under-invoicing, practices that have cost the state and domestic producers heavily.

Earlier this week, Purbaya revealed that the government had obtained a list of suspected smugglers across several industries, including textiles, steel, and tobacco. Arrests are expected as part of a broader crackdown on unfair trade practices.

Textile Industry Reels from Cheap Imports
Purbaya said he was open to meeting with the Indonesian Filament and Fiber Producers Association (Apsyfi) to discuss possible protection measures for the struggling textile industry, which has been hit hard by low-priced imports, particularly from China, that have flooded the domestic market and made it increasingly difficult for local products to compete.

Purbaya said his office had not yet received a formal request from the association but welcomed direct reports from industry players on unfair trade practices.

“We’ll respond positively to any feedback. The goal is simple, to keep our industries alive and create jobs,” Purbaya said.

Apsyfi chairman Redma Gita Wirawasta said he hoped the meeting could take place soon. The association previously highlighted discrepancies between Indonesia’s import data and those of its trading partners, suggesting the possibility of unrecorded inflows that may have bypassed customs checks.

“Protecting the textile industry isn’t just about saving factories. It’s about securing millions of jobs and supporting regional economies,” Redma said.

Indonesia’s textile and apparel (TPT) sector has suffered a wave of mass layoffs in recent years, particularly in 2024 and 2025, leading to tens of thousands of job losses and numerous factory closures. According to Apsyfi, about 60 factories shut down between 2022 and 2024, resulting in the loss of 250,000 jobs. The country’s largest textile company, Sritex Group, laid off more than 11,000 employees between August 2024 and March 2025 after declaring bankruptcy.

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