Trade Minister's Response to Tanah Abang Traders' Complaints of Plummeting Turnover

Jakarta, CNBC Indonesia - Trade Minister Budi Santoso has responded to complaints from Tanah Abang market traders who claim their turnover has dropped ahead of Eid 2026. The government acknowledges the decline but assesses that the situation cannot be generalised.

Budi revealed that his office has met directly with representatives from Tanah Abang market traders to hear about conditions on the ground.

“Actually, yesterday we also met with them from Tanah Abang. The Tanah Abang traders’ association. So we chatted,” Budi told reporters at his office in Jakarta on Friday (27/3/2026).

In that meeting, he said, the traders conveyed that current sales conditions are no longer like before. However, the government still needs to examine the factors causing this more deeply.

“We chatted about what problems are happening there now. They did say it’s not like before, but we need to check. Check in Tanah Abang where the goods come from. Check that, right, whether it’s the same as before,” he stated.

Budi said the traders also admitted to adapting to changes in consumer behaviour. They no longer rely solely on in-store or offline sales but also utilise digital channels to survive.

“Well, yesterday my friends also said ‘actually we sell online too’. Most of them already sell online. Maybe if we say transactions are down, let’s see,” he remarked.

According to him, this change shows that a decline in physical store transactions does not necessarily reflect the traders’ overall sales.

“But clearly, if they say so, they also said back then that (current sales turnover) is not like before, but actually they have tried selling not only physically or offline, but also online,” he added.

As a follow-up, the Ministry of Trade will facilitate traders to have broader market access, including to modern retail.

“Well, we will provide facilitation like for other SMEs. So they can supply, for example, to modern retail or any market. Like business matching with modern retail, we can facilitate that,” Budi said.

In addition, traders are encouraged to be more active in participating in exhibitions so their products become better known to the market.

“Yesterday we actually agreed to continue discussing.. Yes, join exhibitions, they rarely did that before, but they’re starting to get used to it, who knows with that they will be known more by the market,” he stated.

Regarding claims of turnover dropping by up to 50%, Budi emphasised that the figure is still limited in scope.

“Yes, it’s down according to them, it’s reduced, according to them, but that’s only 1-2 sellers, we happened not to go there,” Budi said.

He also assessed that the market conditions in general still appear quite busy, though not as crowded as before.

“Because if we look, it’s actually busy too, from what I saw briefly, yesterday when Mr Purbaya (Finance Minister) went there, it was busy too,” he remarked.

“Yes, I don’t know the exact figure (for the turnover decline). That’s what was said by one of the newcomers,” he continued.

Furthermore, Budi emphasised that the shift to online sales is now an unavoidable reality.

“Well, but they conveyed that actually their sales can go through not only offline, they already.. almost all on average use online, everyone does that, that’s what they said,” he added.

It should be noted that Tanah Abang market has been known for decades as Southeast Asia’s largest textile wholesale centre and is always crowded with buyers, especially ahead of Eid.

However, in recent years, the situation has begun to change. The crowds are no longer overflowing like before the Covid-19 pandemic. Several traders admit that the number of visitors has decreased, although buying and selling activities continue.

“It’s not that busy. Normally before Eid, it’s packed with people you can’t walk, now (it’s quiet). I mean, it’s not empty, but compared to before, the crowds are far less,” said Rosita when met by CNBC Indonesia in Block A of Tanah Abang market, Jakarta, on Tuesday (10/3/2026).

Another trader, Nira, mentioned that changes in consumer behaviour are the main factor.

“It’s quiet, not as busy as before. There are still people coming to buy, but not like before. Now, most who come are those who need to see the model and touch the fabric. If they don’t need that, they can just buy online,” she said.

This phenomenon of shifting to digital shopping is also felt by other traders, like Oong.

“Yes, here we lose to the online ones. Tanah Abang looks quiet, not as busy as before, because people have moved to online,” said Oong.