Purbaya vows tighter border controls to shield domestic market from illegal imports

  • Published on 02/12/2025 GMT+7

  • Reading time 2 minutes

  • Author: Renold Rinaldi

  • Editor: Imanuddin Razak

Minister of Finance Purbaya Yudhi Sadewa on Monday, December 1, 2025, reaffirmed the government’s commitment to strengthening protections for domestic market amid growing concerns over the influx of illegal imported goods that are crowding out local industry. 

Speaking at the National Leadership Meeting (Rapimnas) of the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta, Purbaya stressed that safeguarding domestic demand is central to maintaining the country’s economic momentum.

“We are protecting the domestic market for our entrepreneurs. But once you succeed, don’t forget to pay your taxes so everyone benefits,” Purbaya said, underscoring the need for mutual responsibility between the state and the business sector.

The minister warned that Indonesia’s large consumer base widely viewed as the backbone of national growth must not be exploited by illegal imports or foreign producers at the expense of local businesses.

“If our domestic demand is dominated by foreign products, what’s the point? The profits would go to foreign companies,” he said.

To counter this, he added, the Finance Ministry is preparing stricter surveillance at border checkpoints and plans to close entry points used to distribute unlicensed imports.

Purbaya said these measures are aimed at preventing illegal products from flooding local markets and undermining domestic industries.

He cited the ongoing controversy surrounding the resale of second-hand clothing commonly known as thrifting as a clear example of the issue.

“I don’t have a problem with thrifting itself. What we will stop is the entry of illegal used clothing,” he said.

After cracking down on illicit garment imports, the ministry will expand its enforcement efforts to other sectors deemed vulnerable to smuggling, including steel, footwear and several commodity groups. The goal, Purbaya emphasized, is to ensure that Indonesian businesses operate on a level playing field and can compete fairly.

“Once the illegal goods are handled, we will look at the legal ones as well, which ones disrupt domestic industries. There will be many, for sure,” he added.

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