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ampant distribution of smuggled clothing nationwide, comprising both new and used items, has resulted in an annual potential loss of nearly Rp 11 trillion (US$880 million) for domestic manufacturers, business associations estimate.

Domestic consumption of clothing in the market of 250 million people reached Rp 154.3 trillion last year, out of which Rp 93.35 trillion was supplied by local producers and Rp 48.02 trillion from imports, according to Trade Ministry data cited by the Indonesian Textile Association (API).

There was a mammoth gap of Rp 10.95 trillion derived from unknown imports, which were unregistered in official statistics '€” or in other words, smuggled '€” API secretary-general Ernovian G. Ismy said.

'€œThis has caused a significant loss in market share for the local garment and textile industry. In particular, used clothes [imports] have badly affected our small and medium enterprises,'€ Ernovian told reporters in a press briefing on Monday.

Ernovian further urged the government to take firm action against the illegally transported clothing, including secondhand apparel.

The smuggled clothing recently came into the media spotlight as the government called for local consumers to stop buying secondhand clothes from overseas, which are delivered illegally to the country.

Even though authorities often confiscate the smuggled items, their efforts have apparently been ineffective in clamping down on the smuggling given that there are many illegal gateways sprawling across the archipelago, which could be exploited by smugglers who take advantage of the country'€™s poorly supervised entry points.

When the items manage to enter the market, the authorities find it hard to take action against vendors since under a 2002 trade ministerial decree, sales of all used items are allowed as long as sellers declare the clothing'€™s secondhand status to interested buyers.

Used clothes smuggled onto the Indonesian market are in increasingly high demand by middle and low-income consumers due to their low prices. The items usually come from South Korea, Japan, Singapore and Hong Kong, where they fall into the waste category.

Indonesian Employers Association (Apindo) deputy chairman Suryadi Sasmita urged related authorities to crack down on the smuggling by tracking the origins of illegal clothing, starting from retailers to suppliers.

'€œWe hope the authorities, such as the police and the customs and excise office, can set up a joint team to inspect shops. At present, the police restrain from taking the cases should the goods have been cleared by the customs and excise authorities,'€ he said.

In addition, Suryadi added that the government could limit the number of gateways that allow apparel imports to five ports in order to enhance supervision. Currently, imported clothing, along with some other products such as food and beverages, footwear and electronics, can reach the domestic market through 11 import gateways, including Belawan Port in Medan (North Sumatra), Sultan Hasanuddin International Airport in Makassar (South Sulawesi) and Dumai Port in Dumai (Riau).

Indonesian Garment and Accessories Suppliers Association (APGAI) chairwoman Poppy Dharsono said domestic producers were ready to fill the demand currently met by smuggled apparel, particularly by providing items rejected by stores with high quality standards. '€œWe can sell the goods in our warehouses at cheap prices. If we regularly do this, I believe that illegal apparel will automatically stop within just a year,'€ she said.