Jakarta. Mangga Dua, one of Southeast Asia’s largest wholesale markets, remains a bustling retail center despite coming under fire from the United States over alleged counterfeit trade.

In its 2025 National Trade Estimate Report on Foreign Trade Barriers, the US Trade Representative (USTR) named the North Jakarta shopping district a “priority watch site” for pirated goods ranging from bags and clothing to toys and software.

The report triggered a diplomatic stir, with US President Donald Trump reportedly urging Indonesia to take tougher action against illegal trade in the area. In response, Indonesian officials and local vendors have defended the market’s legitimacy.

“Most of the goods here are certified and sold legally,” said Hengky Supangat, a trader at Mangga Dua Square. “We source from official importers and meet national standards. We don’t deal in illegal goods.”

Hengky acknowledged that the piracy allegations have impacted visitor numbers and sales. “Sales dropped after the rumors surfaced. Cheap, high-quality imports also hurt local products,” he said. He added that his shop has never been raided due to its compliance with regulations. “We’ve never been inspected because our documents are in order.”

But to say Mangga Dua is free from counterfeit goods would be an understatement. A walk through its many corridors reveals stalls openly selling imitation luxury bags, knock-off sneakers, fake branded watches, and even pirated computer software. While multiple raids have been carried out over the years, enforcement has been inconsistent and many vendors return shortly after being shut down.

Trade Minister Budi Santoso said his ministry will investigate the latest US claims.

"We regularly monitor the domestic market. If we find violations, we’ll impose strict sanctions, including confiscations and even shutting down businesses,” he said. As an example, Budi cited the recent seizure of Rp 15 billion ($930,000) worth of uncertified imports in early 2025.

Despite its legal gray areas, Mangga Dua is still a significant part of Jakarta’s commerce. Mangga Dua remains one of Jakarta’s 12 designated coastal tourism destinations, drawing bargain hunters from across the region.

Mangga Dua's origins date back to the 18th century as a residential enclave for Javanese aristocrats. It evolved into a retail destination following the opening of Pasar Pagi Mangga Dua in 1989, which remains an anchor of the district.

Over the decades, the area has expanded into a commercial hub with specialized malls such as Harco Mangga Dua (electronics), ITC Mangga Dua (fashion), WTC Mangga Dua (mixed retail), and Mangga Dua Square (factory outlets and used cars).

Still, the challenge remains: how to preserve Mangga Dua’s economic vitality while cleaning up its reputation for counterfeits. “As long as our products are legal and licensed, we’ll keep selling,” said Hengky. “We won’t panic over outside noise, but we also want fair rules for everyone.”