Trade Minister: Selling Used Clothes Is OK, As Long As It's Not From Imports

Trade Minister Zulhas destroyed imported used goods (Photo: Ministry of Trade)

JAKARTA - The Ministry of Trade emphasized that the government does not prohibit the sale of used goods in the country. However, the sale of used clothes originating from imports is not allowed.

Minister of Trade (Mendag) Zulkifli Hasan said the government continues to take firm action against the smuggling of used imported clothes. This firmness is carried out to protect the domestic textile industry and the micro, small and medium enterprises industry (MSMEs).

"We emphasize once again, selling used clothes is permissible and selling imported goods that have been regulated to be allowed, which should not sell used imported clothes. This is because imports of used clothes interfere with the textile and footwear industry so that they must be addressed immediately," he said in an official statement, Wednesday, March 29.

Zulhas, as Zulkifli Hasan is familiarly called, said that this used imported clothing could disrupt the domestic industry. The reason is, based on data from the Ministry of Cooperatives and SMEs, imports of used clothing have controlled 31 percent of the MSME market.

"The government prioritizes taking firm action from upstream. For this reason, imports of used clothes must be brought under control," he said.

Based on Article 18 of the Minister of Trade Regulation Number 20 of 2021, every importer is obliged to import goods in a new state. However, in certain ways, it can be determined that goods imported in non-new conditions are capital goods that cannot be fulfilled from domestic sources in the context of the industrial production process or in the context of recovery and rebuilding as a result of natural disasters.

Zulhas explained that used clothes are goods that are prohibited from importing based on the Regulation of the Minister of Trade Number 40 of 2022 concerning Amendments to the Regulation of the Minister of Trade Number 18 of 2021 concerning Prohibited Exports and Goods Prohibited from Imports.

"Fold clothes have been banned from importing since 2015 through Permendag Number 51/M-DAG/PER/7/2015 concerning the Prohibition of Imports of Used Clothing," he said.

Based on Permendag Number 36 of 2018 concerning the Implementation of Supervision of Trade Activities, the scope of supervision of trade activities, namely supervision of trade in supervised goods, prohibited, and regulated to be carried out on goods, business actors, and distribution implementation.

Business actors who are proven to import used clothes into Indonesia can be subject to criminal sanctions based on Article 112 Paragraph (2) of Law Number 7 of 2014 concerning Trade with a maximum imprisonment of five years and/or a maximum fine of IDR 5 billion.

Then, Article 62 Paragraph (1) of Law Number 8 of 1999 concerning Consumer Protection can also be subject to a maximum imprisonment of five years or a maximum fine of IDR 2 billion.

"In addition to criminal sanctions, goods can be subject to administrative sanctions in the form of destroying goods based on Article 41 of the Minister of Trade Regulation Number 36 of 2018," he said.

As confirmed yesterday, the Ministry of Trade together with the Minister of Cooperatives and Small and Medium Enterprises Teten Masduki, the Head of the Criminal Investigation Agency (Bareskrim) of the National Police, Komjen Pol Agus Andrianto, the Director General of Customs and Excise at the Ministry of Finance Askolani, and representatives from the Attorney General's Office destroyed 7,363 bales of used clothes worth Rp80 billion in Cikarang, Bekasi Regency, West Java.

The evidence that was destroyed was the result of law enforcement operations by the Criminal Investigation Unit of the National Police and the Directorate General of Customs and Excise of the Ministry of Finance at the warehouse of Pasar Senen and Kramat Market, Central Jakarta, as well as warehouses in Tarumajaya, Bekasi Regency.