Minister of Finance Purbaya Yudhi Sadewa has announced plans to impose stricter measures to combat illegal importation of used clothing, signaling a firmer government stance to protect domestic textile industry and small businesses.

Speaking at Menara Bank Mega in Jakarta on Monday, October 27, 2025, Purbaya said the government had identified weaknesses in existing trade regulations and vowed to close legal loopholes that have allowed secondhand clothing imports, locally known as balpresto persist.

“It’s illegal. The law must be enforced according to the violations. We found weaknesses in the current regulations, and we will tighten them,” he said, referring to the Trade Ministry Regulation (Permendag) No. 40/2022, which amends Permendag No. 18/2021 on banned export and import goods.

Purbaya said he would blacklist importers previously involved in secondhand clothing imports, effectively barring them from conducting any future import activities.

“We already know who the players are. If they’ve been involved in importing balpres, I’ll blacklist them so they can no longer import goods into the country,” he noted.

The move is part of a broader government initiative to protect local textile producers and MSMEs (micro, small, and medium enterprises) from the influx of cheap secondhand apparel, which has long undermined domestic manufacturing.

Purbaya revealed that the Ministry of Finance plans to revise the penalty system for violators. Under current practice, confiscated goods are destroyed and offenders may face imprisonment, but no financial penalty is imposed.

“In the current system, we just destroy the goods and send people to prison, the state gets nothing. I still have to pay for the destruction and feed those in jail,” Purbaya said.

“We’re changing that. From now on, violators will also be fined,” he added.

Focus on ports, not markets

While acknowledging that markets like Pasar Senen in Central Jakarta have become hubs for thrifting and secondhand goods, Purbaya said the government will not conduct direct raids on local traders.

Instead, enforcement efforts will focus on tightening port controls through the Directorate General of Customs and Excise to stop illegal shipments before they reach local markets.

“I won’t raid the markets. I’ll target the ports. If the supply is cut off, the goods will eventually disappear. When the supply dries up, traders will naturally shift to selling locally made products,” Purbaya cited.

Purbaya emphasized that traders can still profit by selling domestically produced goods instead of relying on illegal imports.

“Of course they can make profits from locally produced clothes. Why should we legalize something illegal when it kills our local industries?” he argued.

The former Indonesia Deposit Insurance Corporation (LPS) chairman warned that anyone opposing the government’s crackdown could face legal action.

“Anyone who resists especially those involved in illegal thrifting clothes imports will be arrested. If they reject the policy, that means they admit they’re part of the illegal trade,” he concluded.