Jakarta. Indonesia is intensifying its crackdown on illegal imports of secondhand clothing, with Finance Minister Purbaya Yudhi Sadewa urging thrift store operators to shift toward locally made textile products to help revive the domestic fashion and garment industry.

Purbaya said the government would tighten oversight at ports and other entry points to stem the inflow of smuggled used apparel, which has flooded local markets in recent years. “We’ll cut the supply. If the supply decreases, the market will automatically shrink,” he told reporters in Jakarta on Monday.

He added that reducing the flow of secondhand imports would gradually push both traders and consumers toward locally made clothing. “Over time, the used clothing will run out,” Purbaya said.

The Finance Ministry has vowed firm measures against illegal importers, including blacklisting individuals and companies involved in smuggling and trade violations. “We know who the players are,” Purbaya said on Oct.22. “Anyone who has ever been involved in used clothes smuggling will be blacklisted and won’t be allowed to import goods again.”

Used clothing smuggled into Indonesia typically ends up in local thrift stores at bargain prices, drawing criticism for undercutting small businesses and damaging the competitiveness of the domestic textile and apparel (TPT) industry.

According to government data compiled by the Trade Ministry’s data center, imports of finished textiles, used clothing, and rags reached $78.19 million between January and July 2025, a 17.3 percent increase from the same period a year earlier. The main sources were China, Vietnam, Bangladesh, Taiwan, and Singapore.

Meanwhile, public opinion remains divided. Some support the crackdown as a way to promote local fashion brands, while others worry it could hurt small traders and limit consumer options.

“If it’s illegal, it should be banned,” said Dido, a Jakarta resident. “Local products are already improving in quality and variety. Many new brands can now compete with thrifted imports.”

But Bayu, a self-described thrift enthusiast, disagreed. “As someone who loves thrifting, I’m really disappointed. If it’s banned, I don’t know where to find affordable clothes anymore,” he said.

The Indonesian Chamber of Commerce and Industry (Kadin) welcomed the crackdown, calling it a vital step to protect local textile producers from unfair competition. “From a business perspective, the government’s plan to curb illegal used clothing imports is very positive, especially for domestic textile manufacturers,” said Saleh Husin, Kadin’s deputy chairman for industry affairs.

Saleh said the influx of cheap secondhand goods had depressed prices, eroded profit margins, and created uncertainty for local producers. He added that the government’s firm stance could restore fair competition and stimulate demand for domestic products.

“This policy could boost production capacity, create jobs, and attract new investment in the textile sector,” he said.

However, Saleh also urged the government to support small thrift retailers affected by the ban through a transition program that includes financial assistance, training, and partnerships with local producers. “Law enforcement should go hand in hand with realistic transition programs so that small traders don’t lose their livelihoods,” he said.

He also called for structural reforms to strengthen Indonesia’s textile ecosystem, such as improving logistics efficiency, ensuring affordable raw materials, and developing skilled labor.

The textile 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.