Authorities target illegal imports while allowing domestic thrifting and supporting small traders
Indonesia’s growing thrift culture has sparked debate as the government moves to protect its domestic textile industry without shutting down small traders’ livelihoods.
Government Draws a Clear Line on Thrifting
Indonesia’s Minister of Cooperatives and Small and Medium Enterprises, Maman Abdurrahman, clarified that the government does not prohibit MSMEs from selling second-hand clothing. Speaking in Jakarta on November 17, 2025, he stressed that enforcement targets only the illegal import of used garments from overseas, not local thrifting activities.
Maman explained that second-hand clothing sales take many forms and are not inherently harmful. The real issue arises when imported used clothes enter Indonesia illegally, undermining domestic textile producers and disrupting fair market competition.
Legal Framework Behind the Import Ban
Indonesia’s stance is backed by existing laws. Article 47 of Law No. 7 of 2014 prohibits the import of second-hand clothing and requires all imported goods to be in new condition. This rule is reinforced by Minister of Trade Regulation No. 40 of 2022, which amends earlier regulations on prohibited export and import goods.
Protecting the Local Industries
These regulations form the legal foundation for the ongoing crackdown, aimed at protecting local industries rather than penalizing small traders operating within the domestic market.
Supporting Traders and Managing Economic Impact
To prevent disruption to livelihoods, the government plans to work with domestic textile manufacturers to provide alternative products for traders who previously relied on imported second-hand clothes. Maman said this approach allows traders to continue operating while gradually shifting toward locally made goods.
Will Prioritize Tightening Border Controls
Finance Minister Purbaya Yudhi Sadewa added that enforcement will prioritize tightening border controls instead of immediately seizing illegal goods already circulating in markets. The Directorate General of Customs and Excise will focus on entry points to stop new supplies from coming in.
As reported by CNA, concerns remain that stricter controls could raise clothing prices and affect low-income consumers who depend on thrifting for affordability. Officials, however, believe that once import channels are fully constrained, traders will transition to domestic products, strengthening Indonesia’s MSME and textile sectors.
Indonesia’s approach reflects a balancing act between protecting domestic industries and preserving grassroots economic activity. For Indonesians and Singaporeans watching regional trade dynamics, the policy highlights how Southeast Asian economies are navigating globalization pressures while trying to keep local businesses competitive and inclusive.
Sources: Channel News Asia (2025) , EN Tempo (2025)
Keywords: Second Hand Clothes, Indonesia MSMEs, Textile Industry Protection, Import Ban Policy, Thrifting Trade
