Indonesia’s booming market for imported used clothing threatens millions of local textile jobs and billions in economic losses.
What began as a trendy, budget-friendly fashion movement has grown into a billion-rupiah problem. The surge of illegal imported secondhand clothes—popularly known as “thrifting”—is now crippling Indonesia’s domestic textile industry and costing the economy up to Rp1 trillion (around SGD 80 million) every year.
A Trend With Hidden Costs
Indonesia’s Ministry of Trade (Kemendag) has stepped up enforcement against the illegal import of secondhand clothing, seizing 21,054 bales worth Rp120.65 billion over the past year. Most of these clothes reportedly originate from Japan, China, and South Korea—smuggled through unofficial ports and sold in local markets without import licenses.
Moga Simatupang, Director General of Consumer Protection and Trade Order at Kemendag, emphasized that the crackdown is not just about regulation but protection. “Illegal imports can destroy domestic businesses, especially MSMEs that produce similar products,” he stated. Since 2015, Indonesia has officially banned the import of used clothing, citing both economic and health risks.
Economic Fallout and Job Risks
According to the Indonesian Textile Association (API), the losses from illegal clothing imports range between Rp600 billion and Rp1 trillion annually. The seized goods represent only 10–20% of the actual market flow, implying that the real scale of the problem is far greater.
API Secretary General Andrew Purnama explained that the impact ripples through every layer of the supply chain—garment makers lose orders, fabric mills reduce production, and fiber producers face plunging demand. The textile and apparel sector employs over 3.9 million Indonesians, meaning that falling factory utilization directly threatens household incomes.
From Sustainability to Status Symbol
What makes Indonesia’s thrifting trend unique—and troubling—is its shift in purpose. In other countries, thrift shopping supports low-income communities or charities. In Indonesia, however, it has evolved into a lifestyle choice for consumers with spending power, often driven by the appeal of foreign “branded” fashion at bargain prices.
“Buying local means sustaining local workers,” Andrew stressed. Locally made clothing from small and medium industries remains affordable—typically between Rp50,000 and Rp200,000—but has been overshadowed by imported thrift fashion flooding digital marketplaces and pop-up shops.
Environmental and Regulatory Challenges
The Institute for Development of Economics and Finance (Indef) warns that the influx of used clothes adds another layer of environmental concern. Indef’s Executive Director, Esther Sri Astuti, highlighted that only 20% of each imported bale can actually be sold. “The rest ends up as waste, adding to textile pollution and landfill burden,” she said.
Esther also noted the structural problem behind the trade: “People crave branded looks for cheap, and port inspections remain weak. That combination keeps illegal imports alive.” Indef estimates that the illegal thrift market has already eaten into 15% of the domestic textile market share.
Call for Coordinated Action
Both API and Indef are urging a national-level response. API proposes a four-point reform: strengthen port surveillance to intercept bulk smugglers, ensure consistent enforcement of import rules, provide guidance for small thrift vendors instead of criminalizing them, and realign public perception by restoring thrifting’s original social purpose.
Meanwhile, Kemendag plans to intensify multi-agency monitoring with law enforcement and the National Smuggling Desk under the Coordinating Ministry for Political, Legal, and Security Affairs (Kemenko Polhukam).
Indonesia’s battle with illegal used clothing imports is more than an economic issue—it’s a test of industrial resilience, consumer culture, and environmental responsibility. As policymakers tighten regulations and analysts call for behavioral change, the outcome will shape not just Indonesia’s fashion scene but also the livelihoods of millions who depend on its textile industry. For neighboring countries like Singapore, the crisis highlights the hidden environmental and labor costs of fast fashion trends that often cross borders unnoticed.
Sources: Gokepri (2025) , VOI.ID (2025)
Keywords: Textile Industry, Illegal Imports, Thrifting Trend, Economic Loss, Indonesia Fashion
