Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, has unequivocally rejected any notion of legalizing the import of used clothing. He firmly asserted that such trade constitutes an illegal practice that significantly harms the nation’s economy. Consequently, he chose to offer minimal comment regarding proposals from used clothing or “thrifting” merchants who have called for legalization and expressed readiness to pay taxes.
“My concern is not with the thrifting business itself; rather, my focus is on controlling illegal goods entering Indonesia,” Purbaya stated during the APBN KiTA November 2025 Press Conference at the Ministry of Finance building on Thursday (20/11). He reiterated his commitment to clearing Indonesia of all illegally imported items, including used apparel, which by regulation is prohibited and therefore classified as illegal. Purbaya emphasized, “There’s no connection between paying taxes or not paying taxes [for used clothing merchants]; it remains an illegal commodity.”
To illustrate his point, the Minister drew a parallel to the government’s stance on cannabis transactions. He explained that just as the government would never legalize marijuana, a substance prohibited for consumption and trade, collecting taxes on an illegal item does not render it legal. “If I were to collect taxes from marijuana, for example, would that make the item legal? No. That’s roughly the equivalent,” Purbaya elaborated.
Merchants Propose Legalization of Thrifting
In stark contrast to the government’s firm stance, Rifai Silalahi, a used clothing merchant from Pasar Senen, previously put forth a proposal for the government to legalize the import and trade of used clothing in Indonesia. “Our genuine hope is that the entry of these thrifting goods can now be legalized. We are willing to pay taxes. That is the main point—we want to pay taxes,” Rifai stated during a public hearing with the Community Aspirations Agency of the House of Representatives (BAM DPR) on Wednesday (19/11).
Rifai argued that if Minister Purbaya’s objective is to regulate the import of used clothing due to its detrimental impact on the state, then legalizing the practice could actually serve as a solution. He posited that such legalization could significantly boost state revenue. “Why not? What is wrong with legalizing thrifting?” Rifai questioned, highlighting the potential economic benefits.
The Prohibition on Used Clothing
The prohibition on importing used clothing extends beyond ministerial regulations; it is firmly enshrined in Law No. 7 Year 2014 on Trade. This comprehensive law explicitly mandates that all importers are obligated to import goods in a new condition, leaving no room for the entry of pre-owned apparel.
Under the provisions of Law No. 7 Year 2014, importers found to be engaged in the trade of used clothing face severe penalties, including imprisonment for up to five years and/or a maximum fine of Rp 5 billion, in addition to other administrative sanctions.
Furthermore, Law No. 8 Year 1999 on Consumer Protection reinforces this prohibition by outlawing the trade of goods that fail to meet prevailing standards or regulations. This specifically includes imported used clothing that has not undergone official inspection and sanitation processes, underscoring potential health and safety concerns.
Under this particular law, business operators found to be trading imported used clothing can be subjected to imprisonment for up to five years and a maximum fine of Rp 2 billion.
Summary
Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, firmly rejects legalizing imported used clothing, stating it is an illegal practice that harms the economy. He stressed that paying taxes would not legitimize this trade, likening it to collecting taxes on marijuana. The prohibition is legally supported by Law No. 7 Year 2014 on Trade, which mandates new goods, and Law No. 8 Year 1999 on Consumer Protection, which outlaws goods failing to meet standards.
In contrast, used clothing merchants have proposed legalizing thrifting, expressing readiness to pay taxes to potentially boost state revenue. Nonetheless, current laws impose severe penalties for importing and trading used clothing, including imprisonment for up to five years and fines up to Rp 5 billion. This underlines the government’s steadfast commitment to prohibiting the illegal import of such items.
