Zhulfakar, Jakarta – Local apparel manufacturers are suffering from a surge of secondhand clothing and cheap new fashion imports from China, Micro, Small and Medium Enterprises (MSME) Minister Maman Abdurrahman warned on Thursday, saying the dual shock is now eroding local competitiveness and forcing the government to accelerate its enforcement response.
Minister Maman says the country has seen an "extraordinary" rise in used clothing imports in recent years, warning that the spike is now hitting local producers and speeding up the government's crackdown on the trade.
According to ministry data, Indonesia imported just 7 tons of secondhand garments in 2021. By 2024, the figure had jumped to 3,600 tons. As of August 2025 alone, imports had already reached about 1,800 tons.
Maman said the flow is now large enough to distort domestic markets, and therefore the government must shut down the supply chain "from upstream to downstream."
"The upstream must be closed first," he said on Thursday at the EKSiS Financial Expo and Sharia Seminar in Jakarta. "No matter how strong our support is for MSMEs, if the upstream flow remains open, it will not be possible to stop this."
He said upstream enforcement should begin at Customs, the primary gate for used clothing shipments. Downstream, the government will provide guidance to MSME players and direct thrifting sellers to shift toward local products instead of illegal imports.
These imported secondhand clothes have made their way into local thrift stores, which have become a trend among Indonesia's youth. The thrifting ecosystem remains large, with an estimated 900,000 sellers nationwide, meaning the transition must be gradual to avoid social disruption.
Government now targets e-commerce platforms and Chinese imports
The MSME Ministry has instructed all e-commerce companies to stop promoting or advertising thrifting products as part of broader enforcement and protection of local industry.
"Yesterday I instructed my deputy to contact e-commerce platforms so they begin shutting this down. They may no longer provide advertising facilities for thrifting goods. And this morning, several e-commerce listings have been shut down," he said.
He added that enforcement cannot end at a one-off takedown, but must be continuous, paired with support programs to help traders transition into MSME supply chains. "This cannot stop at temporary closures," he said.
Maman said the pressure on small businesses is not only from secondhand shipments. Cheap brand-new apparel from China is also flooding the domestic market and further squeezing local fashion producers, many of whom simply cannot match the price point of mass-produced imports.
"This is not only about used clothing. There are brand-new garments entering from China. Both streams are hitting our MSME producers," he told reporters. "Handling imported goods requires a different regulatory process because the rules are not the same."
He cited examples of ultra-low-priced products distorting the market, from hijab sold for as little as Rp1,000 to batik priced below sustainable cost. "Unless Indonesia cannot produce hijab or batik. But if we can, then we must hold the line. That's the point," he said.
The minister said the government will continue evaluating the flow of low-priced imports while pushing MSMEs to "move up the value chain" through improved quality, certification, and expanded market access.
According to data from the Indonesian Filament Yarn and Fiber Producers Association (Apsyfi), at least 60 domestic textile companies have collapsed over the past two years, leaving around 250,000 workers jobless. The Institute for Development of Economics and Finance (Indef) puts the figure even higher, estimating that more than half a million workers have been laid off as imports erode domestic market share.