Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 6. No. 3 (2023)
e-ISSN:2621-606X Page: 1811-1819
IMPLICATIONS OF THE IMPORT BAN OF USED CLOTHES BASED ON REGULATION OF THE MINISTER OF TRADE NO. 18 OF 2021
Dede Prasetya
Universitas Islam Negeri Sumatera Utara, Medan, Indonesia [email protected]
Irwansyah
Universitas Islam Negeri Sumatera Utara, Medan, Indonesia [email protected]
Implication of the Import Ban ….. 1811 Abstract
The ban on the import of used clothing has significant implications for various aspects, including increasing business opportunities for the local fashion industry, encouraging the development of local raw materials, reducing the volume of textile waste, and increasing the quality of local fashion products. The purpose of this research is to find out what the implications are. the ban on the import of used clothes based on the minister of trade regulation no. 18 of 2021, the research method used is a conceptual approach. The method used in this study is a conceptual approach related to imported data at the central statistical agency with qualitative analysis using the interview method. So, if you look at the results of the discussion above. we can conclude that imported used clothing has a fungus that is dangerous and can transmit disease. And also this ban has no effect on distributors because they are still supplying imported used clothes domestically. And as for the obstacles themselves, Medan Belawan Customs and Excise has no problems, it's just that it is not focused on the rat port which is managed by the local government.
Keywords: Used Clothing, Import, Regulation.
Implication of the Import Ban ….. 1812 INTRODUCTION
On January 20, 2021, the Minister of Trade, Agus Suparmanto, issued Minister of Trade Regulation Number 18 of 2021 concerning the ban on the import of used clothing. The purpose of this regulation is to increase the production and consumption of domestic products, as well as protect the environment from the negative impacts of textile waste. In the past, imports of used clothing to Indonesia were still relatively high. Even though the government has provided several restrictions, there are still loopholes for used clothing imports to enter Indonesia illegally and damage the domestic clothing industry. In addition, imported used clothing does not always meet health and hygiene standards, so it can endanger the user's health. Therefore,
The ban on imports of used clothing has significant implications for various aspects, including increasing business opportunities for the local fashion industry, encouraging the development of local raw materials, reducing the volume of textile waste, and increasing the quality of local fashion products. Therefore, this regulation is important in increasing the independence and competitiveness of the domestic clothing industry, as well as having a positive impact on the environment and public health (Ministry of Trade Regulation 2021).
The Government of Indonesia has an obligation to meet the basic needs of every citizen in an effort to develop themselves as mandated in the 1945 Constitution Article 28C Paragraph 1 concerning Human Rights which reads: "Everyone has the right to develop himself through meeting his basic needs, has the right to education and obtain the benefits of science and technology, art and culture, in order to improve the quality of life and for the welfare of mankind”. One of the meanings contained in Article 28C Paragraph (1) in the 1945 Constitution explains the importance of fulfilling basic needs for citizens which constitutionally constitute a mandate from the Law to be implemented and managed as part of the government's duties in the context of people's welfare. Various kinds of basic human needs in the study of economics are arranged systematically based on the level of intensity in fulfilling them. The various needs are classified into needs that are primary, secondary and tertiary.
Primary needs (basic) consist of food, clothing and shelter needs. Food needs include the human need for healthy food and drink, the need for clothing includes the human need for clean and proper clothing, while the need for boards is the human need for housing or a
Implication of the Import Ban ….. 1813 place to live for shelter and shelter. these needs are needs that must be fulfilled and managed properly by the government in an effort to ensure the survival of citizens. The government's ability to meet the needs of citizens, especially basic needs, experiences various obstacles and obstacles due to several factors, namely: the inability to process raw goods into finished goods or goods ready for consumption or use, increasing population, limited resources, market monopolies, and income differences. Indonesia has a relatively large population that tends to face obstacles and obstacles in meeting people's needs.
Focusing on the government's ability to meet the needs for clothing is basically very dependent on the tastes and lifestyles of each individual. Decent clothing alone is considered insufficient because the quality of clothing is part of modern human tastes and lifestyles.
Quality clothes from well-known brands or brands are of course priced at quite high prices, while clothes at affordable prices certainly have a quality below that of well-known brands, this situation has led to the circulation of imported used clothing activities. In this case, the issue of used clothing trade has spread in various countries in the world, both in developed countries and developing countries.
This issue has a negative impact on developing countries as if it becomes a receiver for used clothes that are no longer worn by developed countries. Research by Sally Baden and Catherine Barber, states that the condition of the used clothing trade is very small, or less than 0.5%, but for several African countries, the used clothing trade contributes quite a lot or more than 30% of the apparel trade. It was also stated that imports of used clothing could disrupt the performance of the textile industry in West Africa, thereby significantly reducing sales. The decline was due to the price of imported used clothes being much cheaper, while domestic products became less competitive.
Focusing on the Phenomenon The government's inability to procure quality clothing at affordable prices was used by importers to market used clothing from abroad to Indonesian territory. Because the process of trade in imported used clothing continues to experience development, the Ministry of Trade issued Decree of the Minister of Trade No. 51 of 2020 concerning goods that are regulated by the import trade system. This ministerial decree was basically issued with the aim of regulating the import trade system consisting of various kinds of commodities such as oil, rice, cloves, clothing and others. Especially for used clothing, it
Implication of the Import Ban ….. 1814 is declared as waste and is still subject to import trading activities in limited quantities and with the conditions that apply (Ministry of Trade Regulation 2020).
From the point of view of the imported used clothing trade industry, this has damaged the domestic industry in the convection and garment sectors. The Ministry of Commerce issued a letter regarding the dangers of imported used clothing. The ignorance of the public and entrepreneurs regarding the dangers of the bacteria contained in imported used clothing has made imported used clothing continue to be famous. the government stipulates Trade Law Number 18 of 2021 concerning trade stating that "Every importer is obliged to import goods in new condition". From the description of the background above, this study aims to find out what are the effects of the ban on the import of used clothes on thrifting entrepreneurs in the Indonesian market.(In and Surakarta 2022).
REVIEW OF LITERATURE Legal Effectiveness Theory
The theory of legal effectiveness according to Soerjono Soekanto that effective is the extent to which a group can achieve its goals. Law can be said to be effective if there is a positive legal impact, at that time the law reaches its target in guiding or changing human behavior so that it becomes legal behavior. Regarding the effectiveness of the law, it means discussing the working power of the law in regulating and or forcing people to obey the law (Achmad Ali, 2020).
Lawcan be effective if the factors that influence the law can function as well as possible. A law or legislation will be effective if members of the public behave in accordance with what is expected or desired by the laws and regulations to achieve the desired goals, then the effectiveness of the law or laws and regulations has been achieved. The effective measure of whether or not an applicable Law and Regulations can be seen from behavior (Achmad Ali, 2020).
RESEARCH METHOD
The type of research used in compiling this paper is normative research, namely research that uses secondary data as a data source, and in this paper uses a statutory and literature approach that will be linked to the problems discussed (Amiruddin and H. Zainal Asikin, 2004). The research was carried out using an approach with data related to import
Implication of the Import Ban ….. 1815 data available at the Central Statistics Agency by examining the value of imports of used clothes to Indonesia after the issuance of the Minister of Trade Regulation No. 40 of 2022 concerning Export Prohibited Goods and Import Prohibited Goods. The source of research data was obtained through intermediary media, namely the internet.
RESULTS AND DISCUSSION Understanding
Thriftingis an activity carried out by looking for various thrift goods that are being targeted or can also be referred to as thrift goods that are traded in a state that has been used but is still suitable for sale. This decent condition is of good quality, not torn, not defective, may have slight stains but can still be washed easily and cleanly, then the color of the clothing has not faded and still looks bright. Used clothing is an item that is illegally traded in Indonesia, before being traded the used clothing will be sorted first and will be washed (Ristiani, Raidar, and Wibisono 2022).
Used Clothing Import
The import of used clothes is the import of used clothes from abroad into the country.
These used clothes have a much cheaper price. Especially now that there is a trend of thrift and the branded used clothing business continues from year to year. Thrift clothing is an alternative that is still preferred by youth and millennials. The most popular place to do thrift.
The market is the main location for thrift actors who hunt for branded clothes at quite cheap prices, especially for students and university students, that way teenagers can buy clothes that are still good and pocket-friendly. The increasing number of enthusiasts for this thrifting shirt makes entrepreneurs in the market import it in order to meet domestic needs. Imported goods are not always new. Imported goods can also be used goods, For example, used clothes.
Entrepreneurs, take used clothes in various countries. However, most employers take in Korea, Japan, China, and America. Entrepreneurs take a lot from that country, because that country sells very good models so it has the advantage that the style is suitable and contemporary and can be accepted by Indonesian people, especially teenagers, and the size is almost the same as the size of Indonesian society(Dewi, Widiati, and Sutama 2020).
Government Regulation Prohibiting the Import of Used Clothes for Entrepreneurs in the Market
Implication of the Import Ban ….. 1816 Afterissuance of the prohibition on the import of used clothes written in the Minister of Trade Regulation Number 18 of 2021 which has been amended by the Minister of Trade Regulation Number 40 of 2022 concerning Amendments to the Minister of Trade Regulation Number 18 of 2021 concerning Export Prohibited Goods and Import Prohibited Goods. the entrepreneurs of used clothes in this market are confused about getting used clothes imported from abroad when this law is in effect, many entrepreneurs are trying to sell clothes selling at Pasar Senen but still prioritizing new ones, so this is allowed by the government, regulations This is made so that people who are going to buy used clothes remember that these used clothes can contain unwanted things that can result from used clothes being sold, such as skin diseases (Ministry of Trade Regulation 2021.
Enthusiasts of Goods Thrifting in Indonesia
Until now, enthusiasts of thrifting clothes are increasing from year to year which then makes someone interested in opening this business, most of these businesses are carried out by young people, not infrequently businesses are also carried out by parents who incidentally are still keeping up with today's developments. With a business like this, people who initially don't know what business to do can open this business easily and with this business opens up a lot of job opportunities such as maintaining shops, and also transporting new imported goods to the shops to re-sort which clothes are still appropriate. traded at a certain price so that this business can reduce a little unemployment. There are many models offered in the market, even the prices are very cheap.
Obstacles faced with the ban on the import of used clothing
The obstacle to the supervision of the Medan Belawan Customs and Excise is because there are many large ports. If there are large ports, it can be counted clearly, but if there is a port of rat or it is called a people's port which is managed by the local government, it is not entirely supervised by the Medan Belawan Customs, so sometimes it still escapes supervision, but if Big ports no longer have any obstacles to the ban on the import of used clothing.
Indonesian Used Clothing Import Data
Implication of the Import Ban ….. 1817 The amount of interest in thrifting in Indonesia has resulted in a large number of used clothes coming into Indonesia from other countries.
From data from the Central Statistics Agency (BPS) for the 2017-2021 period, the volume and value of used clothing imports in 2017 was US$1,092,000 with a volume of 128 tons. Then in 2018 the volume and value of Indonesian used clothing imports amounted to US$1,790,000 with a volume of 108 tons in 2021. Then in the following year the volume and value of Indonesian used clothing imports increased to US$6,075,000 with a volume of 392 tons in 2019. In 2020 there was a significant decrease from the previous year with the volume and value of Indonesian used clothing imports worth US$494,000 with a volume of 64 tons. In 2021 used clothing is valued at US$44,000 with a volume of 8 tons.
Implication of the Import Ban ….. 1818 From the data above, it can be concluded that in 2019 the volume and value of Indonesian used clothing was the highest and the volume and value of Indonesian used clothing was the lowest, namely in 2021 in the last 5 years (2017-2021).
Impact on Imported Used Clothing Entrepreneurs
So far, what we can see is that the impact this ban has on distributors is not that big, because even though it is banned, there are still many illegal importers who import their goods through rat ports, or small ports that few people know about. for the past 5 years the import value of used clothing has been fairly volatile because in 2017 and 2018 imports of used clothing and their value have increased due to thrift trending at that time but in 2019 and 2020 it has decreased due to global obstacles, namely the pandemic.
But this impact is quite large for traders in several local markets, because these imported goods are prohibited causing their income to shrink and accompanied by a reduced category for the goods they are looking for, because even illegal distributors are more careful in marketing their goods.
CONCLUSION
We can conclude that imported used clothing has a fungus that is dangerous and can transmit disease. And also this prohibition has no effect on distributors because they are still supplying imported used clothes domestically, and this activity is said to be detrimental to society and MSMEs because the goods they sell are cheaper than local goods, but of course more dangerous than new clothes. . this also happens because of the government's lack of attention to the regulations it makes, as if these regulations were made only for bans but there was no follow-up for the violators, the government should have been more assertive in enforcing the regulations it had made.
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