Imports Of Used Clothes Called National Economic Loss Of Up To IDR 1 Trillion Per Year

JAKARTA - The Institute for Development of Economics and Finance (Indef) highlights the serious impact of the rampant imports of illegal used clothing on the national textile industry.

Indef's Executive Director, Esther Sri Astuti, revealed that this practice has eroded 15% of the domestic textile producer's market share. "This used clothing import eroded 15% of the market share of domestic textile producers," Esther said.

Esther revealed that the practice of importing illegal used clothes also caused national economic losses of up to IDR 1 trillion per year, referring to data from the Indonesian Textile Association (API). This loss not only reduces the turnover of textile industry players, but also eliminates the potential for state revenue.

"The loss of imports of used clothes is around Rp. 1 trillion per year because this loss means that the textile domestic market will also be sluggish," he said.

According to him, the loss not only suppresses the turnover of industry players, but also eliminates the potential for state revenue. "In addition to eroded the domestic market, the import of used goods also added piles of garbage in the final disposal site. Because it is illegal, of course, no state revenue has entered," he explained.

Esther added that the practice of importing illegal used clothes was difficult to eradicate due to high demand and weak supervision at the port. People want styles in branded clothes but the price is very cheap. This is what makes imports of used clothes always have demand. On the other hand, supervision at ports is still weak," she said.

From an environmental perspective, Esther continued, imports of used clothes also exacerbate the burden of national textile waste. "In one bale of used clothing imported, only about 20% can be sold. The rest will become difficult to break down waste and add environmental pollution," she said.

He assessed that the government needs to strengthen supervision at the port entrance and trace the actors behind this illegal import distribution chain. If the steps are effective, of course imports of used clothes will not happen again. The government needs to strengthen supervision at the port and trace the traces of actors behind this illegal practice," he concluded.