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Indonesia grapples with illegal imports of used clothing ,footwear, accounting for 31% of domestic market


Indonesia's Cooperatives and Small and Medium Enterprises Minister Teten Masduki and Trade Minister Zulkifli Hasan have announced measures to combat the illegal import of used clothing, with the aim of protecting the country's domestic textile, apparel, and footwear industries, as well as micro, small, and medium enterprises.

The ministers' agreement includes steps to prevent the illegal import of used clothing, including shutting off imports at their source and imposing restrictions on traders selling the clothing. The Ministries of Cooperatives and SMEs, Trade, and Finance will collaborate with the police to close imports of used clothing upstream, while traders who have already taken possession of the illegal goods will be given a deadline to sell the remaining inventory.

Illegal imports of used clothing and footwear, which account for an average of 31 percent of the total domestic market, have negatively impacted the domestic clothing industry, which struggles to compete with these low-cost items that enter the country as waste and are not subject to tax or production costs. This move to protect domestic industries and MSMEs comes as Indonesia is grappling with the economic impact of the COVID-19 pandemic, with the government implementing measures to support businesses and individuals affected by the pandemic.

According to Trade Minister Zulkifli Hasan, the government has destroyed around 7,000 sacks of imported used clothing worth IDR 80 billion ($5.5 million) in the past. The import of used clothing is prohibited in Indonesia unless it meets certain eligibility requirements, and the government is taking measures to ensure that illegal imports are eradicated.


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