The Ikatan Pengusaha Konveksi Berkarya (IPKB), a group representing small-scale garment manufacturers, has expressed grave concerns regarding the Reciprocal Trade Agreement (ART) between the Indonesian and United States governments. The controversy centers on the textile and textile products (TPT) sector, where two Memorandums of Understanding (MOU) were recently signed. These agreements involve the purchase of cotton and worn clothing as a prerequisite for Indonesian exporters to receive a 0% export tariff to the U.S. market.

Nandi Herdiaman, the Chairman of IPKB, stated that while the industry fully supports cotton imports to fulfill raw material needs, they strongly object to the inclusion of worn clothing. He argued that opening the doors to secondhand apparel would directly disrupt the market for small and medium-scale industries (IKM). Although recent government crackdowns on secondhand clothing sellers had begun to show a slight positive impact on domestic demand, Nandi noted that the market has not fully recovered because many large-scale importers have yet to be sanctioned. Instead of opening imports, the IPKB is calling for the complete eradication of secondhand clothing smuggling.

There is significant skepticism regarding the government's assurance that the imported goods will be shredded for recycling. Nandi questioned the guarantee that usable garments would not enter the market under the guise of recycled material, particularly through Bonded Zones, which are often perceived as vulnerable points for the leakage of illegal imported goods. He urged the government to consider the livelihoods of millions of workers employed by small businesses rather than prioritizing the interests of a few large exporters who may be willing to sacrifice the local industry to secure their own quotas.

Adding to the opposition, Rudiansyah, Chairman of the Indonesia Textile Consumer Foundation (YKTI), emphasized that while his organization supports importing recycled shreds for raw materials, they are wary of any loopholes. He warned that once the path for secondhand clothing is legally opened, it will be nearly impossible to close. From a consumer protection perspective, YKTI is concerned about the various risks and downstream impacts of flooding the domestic market with secondhand clothes, a problem the government has failed to solve for over 15 years despite existing prohibitions.

Furthermore, YKTI pointed out a critical technical discrepancy in the terminology used by officials. According to the World Customs Organization (WCO) and the Indonesian Customs Tariff Book (BTKI), "worn clothing" falls under HS Code 6309, which refers to actual secondhand apparel. In contrast, shredded materials or "rags" are classified under HS Code 6310. Rudiansyah concluded that if the agreement specifically uses the term "worn clothing," it clearly indicates that the intended imports are secondhand garments, further justifying the industry's widespread alarm.