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Analysis of Government Policy to Eradicate Imports in Safeguarding the Local Textile Industry in Indonesia

Authors
  • Amru Zidan Universitas Sumatera Utara
  • Muhammad Agung Pratama Siregar Universitas Sumatera Utara
  • Ariel Angel Sinaga Universitas Sumatera Utara
Issue       Vol 7 No 1 (2024): Talenta Conference Series: Local Wisdom, Social, and Arts (LWSA)
Section       Articles
Keywords: Imported used clothing Government policy Local textile industry
Published 2024-02-19

Abstract

Importing secondhand clothing is the act of importing previously used clothing from other countries for resale in the local market. Importing secondhand clothing can cause losses to the local textile industry, especially if it is indicated that it does not go through a legal process. This will refer to the problem of illegal imports which will have a detrimental impact on the local industry. A number of businesses in this industry have been forced to close down and reduce production because they are unable to compete with the sale of illegally imported used clothes. In addition, the import of used clothing is also considered unhealthy because it can spread diseases contained in the used clothing. Indonesia also lost potential employment from this impact. The government then banned the import of used clothing based on that. In this study, the policy was analyzed from various aspects, including the social, economic, and environmental impacts associated with the closure of the industry. This analysis was conducted using descriptive qualitative and data collection methods. The results of the analysis show that the closure of the used clothing industry has a significant impact on the economic and social life of the community, especially for workers who depend on the industry. On the other hand, the government's policy to close the industry provides benefits to the local textile industry, namely increasing employment and increasing the competitive potential of local products, because the domestic textile industry will continue to be hit and lose money if the invasion of illegally imported textiles enters the country easily. The analysis also shows that the large amount of imported used textiles is supported by the increasingly widespread trend of second-hand shopping or commonly called thrifting. This culture is one of the factors that undermine the domestic industry. Another factor that makes the imported textile industry increasingly favored by the public is because generally in the market, branded imported used clothes are sold at low prices, making local textile producers increasingly pressured. Therefore, the government wants to encourage, support, and want the domestic industry to rise and strive to suppress the rate and close the illegal imported textile industry. This analysis will answer the impact of thegovernment's policy in closing the imported textile industry and provide solutions to problems related to the domestic textile industry.