The Ministry of Cooperatives and SMEs Reveals the Impact of Importing Used Clothing to Small Businesses

Used illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Cooperatives and SMEs appreciates the collaboration of various parties, especially ministries/agencies to eradicate illegal clothing, shoes and bag products that enter through Batam.

The collaboration of the ministries/agencies succeeded in destroying 5,853 ballpress presses or as many as 112.95 tons of imported illegal used clothes, shoes and bags with a value of IDR 17.4 billion in Batam.

"These items have been collected from 2018 to 2022", said Deputy for SMEs at the Ministry of Cooperatives and SMEs Hanung Harimba Rachman in a press release, quoted on Tuesday, April 4.

Hanung appreciates the cooperation between the Ministry of Trade, the Directorate General of Customs and Excise, the Attorney General's Office, and the Riau Islands Police so that the import of these illegal used clothes, shoes and bags can be carried out.

According to him, these items have a real impact on SMEs, especially in the garment sector. "We recently discussed with garment SMEs, they can usually order clothes ahead of the holiday, but today there have been no orders at all. This has had an impact", said Hanung.

Furthermore, said Hanung, after the massive eradication of these illegal imports of used clothes, shoes and bags, it is hoped that online markets or e-commerce will also be able to stop sales of these goods.

"Content marketing illegal goods on social media and e-commerce that is still being broadcast please stop. We will invite e-commerce players on Thursday with Indonesian National Police Criminal Investigation Agency to stop displaying content that encourages this activity", he said.

Hanung, said that his party would provide a solution for business actors who trade these illegal used imported goods so they can keep selling.

"In addition to this eradication, we are also developing a clothing and textile ecosystem. We are not only taking action, but there is also a solution to divert the work, we are also working with API (Indonesian Textile Association) to supply goods and with banks to provide financing", he explained.

Meanwhile, Director General of Customs and Excise of the Ministry of Finance Askolani said the destruction of these goods was carried out using a crusher. Until now, the government is known to have taken 17 actions and the process of investigation and determination of suspects is still ongoing.

According to him, the mode of smuggling of these goods is using unofficial port routes.

"So, these were brought as consignments and hidden or mixed with official imported goods. Thank God, our synergy was able to take action and continue the destruction in Cikarang, which was massive in number. We in Batam can carry out the destruction according to the applicable mechanism", he added.