Indonesia’s garment industry is showing signs of renewed strength following government efforts to curb the influx of imported secondhand clothing, commonly known as thrifting. The Ministry of Industry reported that the sector’s confidence index expanded in November 2025, reflecting growth in both domestic and export markets. This development highlights how policy enforcement can reshape industry dynamics and support local manufacturers.
Key Facts & Background
- Government policy:
- Indonesia has intensified measures to ban imported secondhand clothing (thrifting) to protect local industries.
- Enforcement supported by the Ministry of Industry (Kemenperin) and Ministry of Finance.
- Industry confidence:
- Industrial Confidence Index (IKI) for November 2025 showed the garment subsector in expansion mode, signaling strong performance.
- Export-oriented garment firms:
- Increasing production ahead of the 2026 fashion season.
- Export growth recorded at 4.25% year-on-year (Jan–Sep 2025) in both volume and value.
- Domestic-oriented garment firms:
- Preparing production for Ramadan and Eid al-Fitr 2026, anticipating higher seasonal demand.
- Reported rising orders and production readiness.
- Policy impact:
- Officials attribute part of the industry’s expansion to the restriction of secondhand imports, which reduced competition from low-cost used clothing in the domestic market.
Strategic Insights
The crackdown on imported secondhand clothing illustrates how trade policy can directly influence industrial performance. By limiting thrifting, the government has created space for domestic garment producers to strengthen their market share, particularly in the affordable clothing segment where secondhand imports previously dominated. This policy not only protects local manufacturers but also encourages consumers to shift toward locally produced apparel, reinforcing the domestic value chain.
For export-oriented firms, the positive momentum reflects Indonesia’s growing role in global fashion supply chains. The 4.25% increase in garment exports demonstrates resilience amid global competition, suggesting that Indonesian producers are successfully adapting to international demand cycles. Seasonal production for the 2026 fashion market further indicates confidence in long-term competitiveness, supported by improved industry sentiment.
Looking ahead, the sustainability of this growth will depend on balancing protectionist measures with innovation and productivity gains. While banning secondhand imports provides short-term relief, long-term competitiveness requires investment in design, technology, and workforce skills. If Indonesia can leverage this policy window to modernize its garment industry, it could transform the sector into a stronger contributor to national manufacturing, job creation, and export earnings—positioning the country as a more influential player in the global apparel market.