AGTI Backs Crackdown on Illegal Textile Imports and Thrifting

The Indonesian Garment and Textile Association (AGTI) held an audience with Finance Minister Purbaya Yudhi Sadewa at the Ministry of Finance in Jakarta on 5 November 2025. AGTI Chairperson Anne Patricia Sutanto stressed the need for strict monitoring of textile imports, especially used clothing that enters the market without customs clearance.

Illegal imported used garments evade Income Tax (PPh) 21 and PPh 25, reducing state revenue and weakening the competitiveness of domestic producers. AGTI proposed that seized items be recycled into polyester or cotton base raw materials, aligning with circular‑economy principles.

The Finance Ministry responded positively and will discuss technical steps with the Financial System Stability Committee. Tightening control of illegal imports is expected to bolster the textile sector, protect jobs, and ensure fair tax implementation.