The Coordinating Ministry for Economic Affairs of Indonesia has refuted reports suggesting it has allowed the import of used clothes from the United States under the Reciprocal Trade Agreement (ART).
“It is not true. What is regulated under this agreement is the import of shredded worn clothing(SWC),” stated Haryo Limanseto, the ministry’s spokesperson, in a written statement on Sunday.
Indonesia’s requirement to permit SWC imports is specified in Article 2.8 of the ART, designed to support the United States’ recycled clothing sector.
Haryo emphasized that the imported materials are shredded and destroyed, serving only as raw inputs for industrial use, and therefore lack the economic value associated with second-hand garments sold in thrift shops.
He stressed that none of the SWC will enter the consumer market as second-hand apparel, since all imported SWC is designated for processing by domestic industries for production purposes.
The ART forms part of ongoing trade negotiations between Indonesia and the United States concerning reciprocal tariffs. In April 2025, the U.S. imposed reciprocal tariffs on several nations, including Indonesia, which was subjected to a 32% rate.
Indonesia subsequently entered negotiations and, on July 15, 2025, secured a reduction to 19%, as detailed in a Joint Statement on the ART framework.
The finalized ART agreement was signed on February 19 by Indonesian President Prabowo Subianto and U.S. President Donald Trump. It will come into force 90 days after both governments submit written confirmation that all domestic legal requirements, including consultations and ratifications, have been completed.
Soon after the signing, the U.S. Supreme Court ruled that Trump’s wider trade tariff policy was unconstitutional, stating that the President lacked inherent authority to impose sweeping tariffs on foreign nations.
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