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SME Ministry Backs Plan to Turn Thrift Icon Pasar Senen into a Local Product Hub

The Jakarta Globe
November 3, 2025 | 9:38 pm
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A woman shops for secondhand clothing (thrifting) at Pasar Senen in Central Jakarta. (MSME Ministry)
A woman shops for secondhand clothing (thrifting) at Pasar Senen in Central Jakarta. (MSME Ministry)

Jakarta. The ban on illegal imports of secondhand clothing has raised concerns among thrifting traders, including those at Pasar Senen in Central Jakarta, which for many years has been a livelihood center for families and MSME entrepreneurs.

Responding to this, Micro Business Deputy at the Ministry of Cooperatives and MSMEs, Temmy Satya Permana, encouraged a rebranding of Pasar Senen into a hub for locally made products and urged thrift store owners to transform their business toward selling quality Indonesian goods.

“They are essentially MSME business actors who need guidance and empowerment. They are not anti-local. In fact, they are ready to collaborate with high-quality local brands,” Temmy said during a meeting with Pasar Senen thrifting representatives, the People’s Movement for the Nation (GRPB), domestic fashion producers, and local product activists in Jakarta on Monday.

Citing GRPB data, Temmy said there are around 984,000 thrifting traders across Indonesia, a figure that reflects a significant economic scale if the ecosystem is properly organized and directed toward strengthening local products and regulatory compliance.

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“We continue to support enforcement against illegal imports, especially secondhand clothing. But we also need to provide solutions so traders can continue doing business in an orderly and empowered way,” Temmy said.

The MSME Ministry reiterated its commitment to support Pasar Senen’s transformation into a local product center through fair partnerships, capacity building, improved product curation, and stronger access to finance and marketing.

This approach integrates national interests --including consumer protection, curbing illegal imports, and empowering MSMEs-- as a single policy framework.

Through collaborative and transformative steps, Pasar Senen is expected to become a showcase of Indonesian products that are orderly, healthy, competitive, and welfare-enhancing.

At the same event, thrifting activist Oscar Pendong from GRPB reaffirmed traders’ commitment to collaborate with domestic producers to market local products. “We are ready to cooperate with local goods. In fact, many thrift store owners already sell local products that the public barely notices,” Oscar said.

He added that traders are asking the government not to abruptly ban the sale of pre-loved clothing without a clear roadmap. If tighter restrictions are required, they hope to see a gradual approach so businesses do not shut down suddenly and traders can adapt.

He also called for clear regulation of thrifting activities so traders can pay taxes and contribute to state revenue.

Oscar said there is potential state income from ecosystem reform. One container of imported clothing, if processed under legal and transparent mechanisms, could generate hundreds of millions of rupiah in business-level proceeds.

According to Oscar, clear rules, including proportional taxation, would benefit the state while also giving business certainty to traders.

“We hope the government provides opportunities through measured limits and clear rules of the game,” he said.

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