Risks of Illegal Used‑Clothing Imports for Revenue and SMEs

Christiantoko, Executive Director of NEXT Indonesia Center, said on Thursday, 30 October 2025, that illegal imports of used clothing pose five major threats to Indonesia. The smuggling occurs without proper licensing and violates customs duty regulations.

The first threat is the loss of customs duties that would otherwise contribute to state revenue. Second, the cheap illegal garments undercut prices, disrupting competition for micro, small and medium enterprises (MSMEs) in the garment sector. The third threat concerns legal violations, the fourth involves invoice manipulation (under‑invoicing) that lowers declared import values, and the fifth is a health risk because the clothing is not sterilized.

Together, these effects erode government income, weaken local producers, and raise the risk of skin infections. Effective response therefore requires coordination among the Ministry of Finance, the Attorney General’s Office, and police to enforce regulations and protect public health.