Widespread smuggling of secondhand garments had been slowly deriding the domestic market, since early 2000.
Indonesian Textile Association has reported that 70 companies had stopped functioning, as a result approximately 70,000 textile and garment employees are jobless, at the end of previous year out of 1.2 million workers in the industry.
The sector as against the growth of 4.3 percent in 2004, only grew by 1.5 percent in 2005, due to overlapping problems.
Unaware, the popularity of secondhand clothes would affect adversely, the lives of Indonesian garment workers; people buy shirts and skirts sold cheaply at Rp 5,000 each, because they cannot afford mall prices.
Further, on browsing through the stacks of clothes, unique items unmatched even by expensive 'branded' boutique, can be found fetching high prices when resold.
More than 250,000 bales enter the country mostly through North Sumatra, consisting of second hand shirts, skirts, jackets, trousers, suits and underwear originating from Malaysia, Singapore, Korea and Japan.
There exists a Secondhand Garment Association, at national level for illegal distribution chain that claims to represent some 1,500 vendors nationwide.
This vicious circle of illegal trade is created due to large demand and with the support of corrupt and conniving government officials.
Business will continue till the customers arrive irrespective of its unpleasant affects.