The Illegal Trade in Used Clothing in Indonesia Amidst the 2019-2024 Protectionist Import Ban Policy

Abstract

The illegal trade of imported used clothing in Indonesia continues to occur, causing direct losses to the domestic textile industry. Although the government has implemented an import ban through the Minister of Trade Regulation Number 40 of 2022 as a form of Friedrich List's protectionism policy, this practice remains widespread in the field. This study aims to find out the reasons why this illegal trade persists, as well as to evaluate the protectionism policy in protecting the local market from global competition. This study uses a descriptive qualitative method with a document study method on relevant primary and secondary sources. Data collection was carried out through in-depth interviews with used clothing traders, local textile vendors, and consumers, alongside direct observations. Data analysis uses the concept of protectionism with a focus on infant industry protection and national interests. The results show that despite the import ban policy, illegal used clothing still enters Indonesia due to the high demand from the Indonesian public for these clothes. State protection efforts have not been able to counter the appeal of the global market. As a result, the government's goal to protect the local textile industry has not been fully achieved. This shows that Indonesia's protectionism policy is not fully supported by the public, so even with the ban in place, the trade of used clothing continues to run domestically.