Thrift Sellers Push Back as Indonesia Intensifies Ban on Imported Second Hand Clothing

A Growing Clash Over Thrift Fashion in Jakarta

Indonesia’s intensifying crackdown on imported second hand clothing has met resistance from thrift sellers and shoppers in Jakarta, where inflation and changing fashion tastes keep demand high. Markets like Senen in Central Jakarta attract crowds looking for unique styles at low prices, even as authorities warn that imported used apparel is illegal and harmful to domestic producers. The trade sits at the center of a debate about affordability, public health, and the future of Indonesia’s textile industry.

The government has long banned the import of second hand garments and footwear, but enforcement waxed and waned. Over the past two years officials have stepped up raids, tightened port checks, and destroyed seized bales of used clothing. That campaign has drawn pushback from people who rely on thrift shops for income or for budget friendly wardrobes. Many shoppers say local brands can be more costly and often do not offer the specific designs they want, which are often inspired by Japanese and Korean streetwear.

Officials argue that imported used apparel puts consumers at risk, can enter the country without sanitation controls, and undercuts micro, small and medium enterprises. Industry groups say factories continue to suffer from cheap imports that often slip in untaxed, sapping sales during peak seasons. The question for policy makers is whether tougher enforcement alone can curb a trade that consumers and traders view as essential in a tight economy.

What the Ban Covers and Why It Exists

Indonesia’s legal framework is clear. Law No. 7 of 2014 on Trade provides the backbone for restrictions on prohibited imports. The Trade Ministry has reinforced the ban through a series of regulations, including a 2015 prohibition on imported used clothing and footwear and Trade Ministerial Regulation No. 40 of 2022, which amends Regulation No. 18 of 2021 to keep second hand apparel out of the country. The stated goals are to protect public health and safety, support domestic businesses, and prevent unfair competition from untaxed and unregulated goods.

The ban targets imports, not the domestic resale of used clothing. People can still buy and sell second hand garments sourced locally. The problem, officials say, is that much of the second hand clothing in markets arrives as compressed bales, often called balpres, that originate from abroad. Common source countries include Singapore, Malaysia, Vietnam, Thailand, South Korea, Japan, and China. These shipments often reach Indonesian shores through complex routing and misdeclaration, making oversight difficult. Authorities also point to reports that a large share of the apparel market has been penetrated by smuggled used clothing, which deprives the state of tax revenue and weakens demand for local goods.

Health is another pillar of the ban. Imported used garments can carry unknown residues and may not have undergone adequate cleaning or disinfection before entering local supply chains. The government says strict controls are needed to prevent such risks from passing to consumers. Supporters of the crackdown also argue that stopping the inflow will help retailers pivot to locally made clothing and give manufacturers a fair chance to compete on price and design.

Enforcement Ramps Up

Enforcement has intensified. Authorities reported major seizures of imported second hand clothing in 2023 and 2025, including 19,391 bales worth more than 112.3 billion rupiah (about 7 million US dollars) confiscated from warehouses across West Java. The Trade Ministry coordinated with intelligence and law enforcement agencies to track the goods from entry points to storage hubs. Customs officials have increased inspections and interceptions at major ports and along common smuggling routes.

Trade Minister Zulkifli Hasan framed the effort as an upstream strategy designed to cut off supply before it reaches markets and online sellers. He explained that the government wants to stop the flow at ports and logistics nodes, which would reduce the need for raids in traditional markets.

Introducing the minister’s thinking, officials said the objective is to protect producers by disrupting the supply chain of illegal imports. In his words:

“If the upstream stops, the retailers will stop too.”

Finance Minister Purbaya Yudhi Sadewa has pressed for tighter oversight and stricter penalties. He said the government plans to blacklist importers involved in the trade of illegal used clothing, expand the use of fines in addition to destruction of goods, and pursue imprisonment for severe violations. He also stated that authorities would focus enforcement at ports rather than conducting direct raids on small traders. His message underscores the government’s view that changing incentives at the source can push buyers and sellers to legal, locally produced goods.

Introducing his stance during public remarks, Purbaya explained why the government would not legitimize the illicit supply chain. He said the state cannot condone a practice that harms domestic businesses. As he put it:

“Why should something illegal be legalized when it harms local industries.”

Why Thrifting Thrives

Despite legal risks for importers, the appeal of thrifting is clear on the ground. Many Indonesians face tighter budgets, and thrift stores supply everyday items at prices far below new retail. Markets like Senen in Central Jakarta are famous for variety. Shoppers sift through racks for unique pieces, including Japanese and Korean styles that are hard to find in local shops. Some buyers tailor or repair their finds, extending the life of garments and personalizing looks without spending much.

Digital platforms have also expanded the reach of thrift culture. Instagram, TikTok, and marketplace apps host a daily churn of “drops” and live streams where sellers model items and answer questions. Clothing moves quickly between cities, with couriers connecting rural buyers to urban inventory. For students and low income families, the availability of quality pieces at a fraction of new prices makes second hand shopping a practical choice.

Environmental arguments add another layer. Advocates say reusing garments keeps textiles out of landfills and reduces the demand for new production, which consumes water and energy. A separate controversy made waves in 2023 when a shoe recycling program in Singapore was found to have supply chain leaks, with shoes intended for recycling showing up in Indonesian second hand markets. Companies involved issued apologies, and the episode underscored how complex reuse systems can be without strict oversight.

Winners and Losers in the Textile Economy

Local manufacturers say cheap imported used apparel erodes demand for new products and reduces orders for raw materials and accessories. The problem is most visible before major holidays, when families traditionally buy new clothes. Producers report that sales during these periods have thinned as more consumers turn to thrift. Industry advocates argue that smuggling has made it difficult to keep factories running at capacity.

The textile sector’s recent history has been turbulent. Scores of factories have shut down since the pandemic. Industry figures describe at least 60 closures between 2022 and 2024, with an estimated quarter million jobs lost in that period. Sritex Group, a major manufacturer, entered bankruptcy and laid off thousands of workers. Business groups support the crackdown on illegal imports, saying it offers a chance for domestic brands and suppliers to regain ground. They also acknowledge that small thrift retailers will need help to transition toward legal, locally sourced goods.

Officials have discussed measures to support that transition. Tightened import controls on finished textiles are accompanied by proposals for incentives to upgrade local production, improve design variety, and lower costs. Advocates for balanced policies say the goal should be to make legal local options compelling on style and price, so shoppers feel less pressure to chase imported used clothing in gray channels.

Inside the Smuggling Chain

Large seizures in 2025 highlighted how organized the illegal supply chain has become. Authorities traced goods shipped from South Korea, Japan, and China through storage warehouses in West Java, pointing to a distribution network that spans ports, trucking routes, and traditional markets. Textile associations have urged investigators to go beyond warehouse raids and identify the intellectual actors who coordinate shipments, handle payment, and manage wholesale distribution.

Trade data reflects the challenge. Second hand clothing transactions under HS Code 630900 still show up in international databases even with Indonesia’s prohibition. Reports for 2024 and the first half of 2025 indicate that shipments continue to be recorded, suggesting misdeclaration or transshipment maneuvers that can mask final destinations. The older 2015 ban lacked clear penalties, which limited deterrence. Newer regulations and planned blacklists seek to add bite by combining destruction of goods with fines and, in severe cases, imprisonment.

Operationally, enforcement focuses on key entry points like Tanjung Priok Port, as well as routes along the Malacca Strait and in Kalimantan. Customs and the Navy have collaborated on sea and port seizures. Officials say many packages originate from Malaysia and are funneled through smaller ports and warehousing hubs before reaching retail markets. By pushing monitoring upstream to the border, authorities aim to reduce both smuggling and the need for disruptive raids in city markets.

Costs, Culture, and Consumer Choice

For many families, thrift shopping is a cost management tool. Uniforms, children’s clothing, workwear, and seasonal pieces all add up. Retailers at markets like Senen built livelihoods by sorting, cleaning, and repairing garments, then selling at prices that match local budgets. Shoppers often describe thrifting as a hunt. It offers variety, from retro denim to niche streetwear looks, and fosters small businesses in tailoring and mending.

That culture sits uneasily alongside the ban on imports. When imported supply dries up, stall owners struggle to find inventory that matches customer tastes. Some turn to locally sourced second hand clothing gathered through consignment or buyback programs, but many say the quantity and diversity do not compare. Others have tried to shift toward local brands, yet they find it difficult to meet demand for specific cuts, fabrics, and prints without raising prices.

Consumer safety remains a core issue. Officials caution that imported used garments may not meet hygiene standards. Public health concerns are one reason the law draws a bright line at the border. Clear cleaning protocols and traceable sourcing are easier to enforce inside the country, where authorities can inspect and license businesses and where sellers can show how items were processed.

What Could a Balanced Policy Look Like

Experts and industry groups often describe a two track approach. First, strike at smuggling by tightening controls at ports, blacklisting repeat offenders, and investigating financial networks behind shipments. Second, support legal domestic resale and local manufacturing. That can include sanitation standards for used clothing collected inside Indonesia, training for small traders to shift toward partnerships with local brands, and microfinance to expand repair and upcycling services.

Local producers also need to match the style and variety that draw shoppers to imported used items. That means more flexible runs, faster design cycles, and price points that reflect tight household budgets. Policy support, such as tax incentives for modern machinery, can help factories produce small batches that mimic the unique selections found in thrift stalls. Online marketplaces can assist by screening listings for illegal imports and elevating verified local resellers who source domestically.

Consumer education rounds out the picture. Clear labels about garment origin and cleaning, easy ways to report suspicious listings, and public campaigns about the health and economic risks tied to illegal imports can shift behavior over time. If local supply becomes more diverse and affordable, many shoppers will choose it willingly, especially if it retains the creativity and individuality that make thrifting popular.

Regional and Global Context

Indonesia is not alone. The Philippines has prohibited the commercial import of second hand clothing since the 1960s, yet the trade persists under the name ukay ukay. Governments across Southeast Asia grapple with the same tension between affordability and protection of local industry. Internationally, second hand fashion is growing fast, boosted by social media and resale platforms. At the same time, campaigners warn about textile waste flowing to developing countries and the pressure it places on waste systems.

Policy outcomes depend on whether countries can curb smuggling while building attractive, lawful alternatives. Indonesia’s current push aims to do both. Sustained border enforcement, targeted support for small retailers, and stronger local brands could reshape the market. The challenge is to protect jobs and health without cutting off a vital source of affordable clothing for millions of people.

Key Points

• Indonesia bans imported second hand clothing under the 2014 Trade Law and Trade Ministerial rules, while allowing domestic resale.
• Authorities have stepped up enforcement since 2023, including the seizure of 19,391 bales worth more than 112.3 billion rupiah in West Java.
• Trade Minister Zulkifli Hasan said the strategy is to shut off supply at the border, not raid every market stall.
• Finance Minister Purbaya Yudhi Sadewa plans blacklists, fines, and potential imprisonment for illegal importers, with a focus on port controls.
• Thrift markets like Senen in Jakarta remain popular because of low prices, unique styles, and tight household budgets.
• Industry groups support the crackdown, citing factory closures and job losses, and urge support for small traders to shift to legal local goods.
• Textile associations allege a structured smuggling network, calling for probes into organizers, not only seizures of warehouses.
• Digital platforms have boosted thrifting, making enforcement of import bans more complex across online channels.
• Environmental claims in favor of reuse are weighed against public health and the economic damage from illegal imports.
• Balanced policies could pair tougher border enforcement with incentives for local manufacturing and legal domestic resale.