Indonesia to Strictly Monitor Imports of Used Clothing from the US
Jakarta, CNBC Indonesia - Minister of Trade Budi Santoso has assured that imports of shredded used clothing from the United States will not be allowed to leak into the market as thrifting products. He stated that the entire import process will be strictly monitored from the beginning, ensuring that the goods are used purely as raw materials for the industry, not as ready-to-wear clothing.
Budi explained that every item entering Indonesia must go through administrative procedures, including surveyor reports (LS), which serve as an initial filter before imports are approved. “Before the import, there is a surveyor report. So, it is ensured that the goods are indeed intended for industrial raw materials. There are requirements and surveyor reports, so it is ensured that there are no problems, because before arriving here (Indonesia), there are surveyor reports,” said Budi when met at his office in Jakarta on Thursday (February 26, 2026).
He believes that this mechanism serves as an initial control measure to prevent goods from deviating from their intended use and to ensure compliance with regulations.
The import of shredded used clothing is part of a reciprocal trade agreement (Agreements on Reciprocal Trade/ART) between Indonesia and the US. Under this scheme, Indonesia allows the import of shredded worn clothing (SWC) that has been destroyed and can only be used as input for the industry.
The Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, emphasized that SWC no longer has economic value as whole clothing. “SWC is imported to meet the needs of raw materials for the patchwork fabric industry and recycled textile products [yarn]. This is fundamentally and regulatively different from the prohibition of importing ready-to-wear used clothing,” said Haryo in a statement.
The government also ensures that the entire volume of SWC imports will be absorbed by domestic industries, so there is no room for these goods to enter the market as wearable used clothing.
Business Actors Remain Wary
However, this import plan has raised concerns among garment industry players. The Association of Creative Garment Entrepreneurs (IPKB) rejects the opening of imports of worn clothing in the Indonesia-US ART, as it is considered to have the potential to put pressure on small and medium-sized enterprises (SMEs) in the garment industry.
The Chairman of IPKB, Nandi Herdiaman, believes that the previous crackdown on the sale of used clothing had given some breathing room to local SMEs. Therefore, he asked the government to focus on eradicating illegal imports. “We are actually asking that the practice of importers of used clothing be completely eradicated, instead of opening up imports,” said Nandi in a statement, quoted on Wednesday (February 25, 2026).
Nandi also questioned the effectiveness of supervision in the field. “Because even though they say that what is being imported is shredded, what guarantee is there that what is being imported is not used clothing?” he said.