NEWS & CSR

The Threat of Illegal Imports to Indonesia’s Textile Industry and Local Products

21 Sep 2025 | News Category: -

Imagine shopping at a market or mall and finding goods sold at unbelievably low prices—far below the cost of local products.
At first glance it seems like a bargain, but have you ever wondered where those items come from?
Many are illegal imports entering Indonesia without paying taxes or passing any quality control, as reported by tirto.id.

This phenomenon now poses a serious threat to Indonesia’s textile industry and other sectors such as cosmetics, ceramics, and electronics.
We believe this issue deserves our collective attention because the impact reaches not only business owners but also workers, the economy, and the future of domestic industry.

Why Illegal Imports Are a Serious Problem

Definition and Modus Operandi

Illegal imports are goods brought into the country without official procedures, proper permits, or by using falsified documents.
Because they bypass taxes and safety standards, these products can be sold at extremely low prices.

Scale of the Threat in Indonesia

According to industry associations cited by Tempo, an estimated 40–50% of textile products circulating in the domestic market are illegal imports.
This not only squeezes the local textile sector but also causes potential economic losses of hundreds of trillions of rupiah each year.
The result? Lost tax revenue, shrinking factory orders, and thousands of workers at risk of losing their jobs.

Impact on Domestic Industries

1. Textiles and Garments

As one of Indonesia’s largest labor-intensive sectors, textiles and garments are hit hardest.
When markets are flooded with cheap, illegal imports, local manufacturers struggle to compete, leading to production cuts and massive layoffs.

2. Cosmetics and Beauty Products

Illegal cosmetic imports are also widespread.
These items often bypass safety testing, creating health risks for consumers while undermining legitimate local producers.

3. Ceramics and Other Industries

Smuggled ceramic products hurt local manufacturers who have invested heavily in technology and workforce development.
This demonstrates that the illegal import threat spans multiple sectors, not just textiles.

Read also: INDI 4.0 – Building Digital Readiness in the Textile Industry

Government Actions to Tackle Illegal Imports

Task Force on Illegal Imports

The government has formed a multi-agency task force to strengthen border, port, and domestic market inspections.

Stronger Regulations and Customs Oversight

Parliament is urging Customs to tighten both border and post-border controls to prevent illegal goods from entering and to ensure that smugglers face strict penalties.

Presidential Commitment

In an economic forum with business leaders, the President reaffirmed his commitment to protecting labor-intensive industries like textiles.
Policies supporting local products and combating illegal imports are central to safeguarding jobs and national economic stability.

Illegal imports are not just a business concern—they are a national issue.
The textile, cosmetics, ceramic, and electronics industries will all suffer if these practices continue.
We believe that through collaboration between government, business, and society, domestic industry protection can be strengthened.

Your role as a consumer is equally crucial: choosing local products helps secure Indonesia’s economic future.
Let’s fight the spread of illegal imports together—be a wise buyer, support protective policies, and take pride in products made in Indonesia.

Share This

BACK

NEWS CATEGORIES

View All Categories...