BETWEEN POLICY AND PRACTICE: THE PERSISTENCE OF THRIFT MARKETS UNDER INDONESIA’S SECOND-HAND CLOTHING IMPORT BAN
Keywords:
Second-hand Clothing, Thrift Markets, Informal Economy, Policy Implementation, Rational ChoiceAbstract
Since the mid-2010s, Indonesia has implemented a strict prohibition on the importation of second-hand clothing with the stated objectives of protecting domestic industries, safeguarding public health, and ensuring trade compliance. The aim of this study is to investigate the persistence of urban thrift markets in Makassar despite this prohibition and to examine the dynamics that shape the policy practice gap. Adopting a qualitative research design, the study draws on semi structured interviews, direct observations, and documentary analysis involving municipal officials, traders, and consumers. The findings reveal that enforcement at the local level is undermined by limited institutional capacity, corruption, and socioeconomic pressures. Despite repeated enforcement actions, informal thrift markets demonstrate structural adaptability, strong community networks, and rational strategies that sustain operations. Consumers are driven by affordability, cultural identity, and sustainability values, while traders rely on rational cost benefit calculations and social legitimacy to mitigate risks. These insights highlight that prohibition alone cannot dismantle practices deeply rooted in economic necessity and cultural consumption. The study contributes to urban political economy scholarship by integrating policy implementation theory with rational choice analysis to explain why regulatory outcomes diverge from intentions. The findings imply that effective governance of informal markets requires adaptive strategies that combine regulation, empowerment, and social protection, rather than coercive prohibition.
References
Adhikari, R. and Knight-John, M. (2004). What type of competition policy and law should a developing country have? 1. South Asia Economic Journal, 5(1), 1-25.
Aleksanyan, A. and Aleksanyan, A. (2022). Rethinking the non-resilience of trade unions in armenia: how to protect social rights and freedoms of workers? Journal of Political Science Bulletin of Yerevan University, 1(1), 78-106.
Allen, S., Danforth, S., Grieb, S., Glick, J., Harris, S., Tomko, C., … & Sherman, S. (2022). Law enforcement and syringe services program implementation in rural counties in kentucky: a qualitative exploration. Harm Reduction Journal, 19(1).
Ameyaw, B., Oppong, A., Abruquah, L., & Ashalley, E. (2016). Informal sector tax compliance issues and the causality nexus between taxation and economic growth: empirical evidence from ghana. Modern Economy, 07(12), 1478-1497.
Anderson dalam Budi Winarno. (2014) .Kebijakan Publik: Teori, Proses, dan Studi Kasus. (Cet. II; Yogyakarta: CAPS).
Andriani, M. N., & Ali, M. M. (2013). Kajian eksistensi pasar tradisional Kota Surakarta. Teknik PWK (Perencanaan Wilayah Kota), 2(2), 252-269.
Anggadwita, G., Luturlean, B., Ramadani, V., & Ratten, V. (2017). Socio-cultural environments and emerging economy entrepreneurship. Journal of Entrepreneurship in Emerging Economies, 9(1), 85-96.
Aryaputra, R., Wibowo, T., Stefan, R., & Yusiana, R. (2023). The phenomenon of thrifting as an alternative solution related to reducing environmental impact on fast fashion. Formosa Journal of Multidisciplinary Research, 2(8), 1511-1526. https://doi.org/10.55927/fjmr.v2i8.5696
Bargain-Darrigues, G. (2022). Practices of thrift among high cultural capital consumers. when economic status gets in the way of ethics. Journal of Consumer Culture, 23(3), 711-730.
Asmirah, A., Surya, B., & Karim, A. (2023). Circular mobility and poverty in urban mamminasata metropolitan indonesia. Mitteilungen Klosterneuburg.
Atmojo, M., Darumurti, A., Hanif, N., & Agani, M. (2024). Dynamics of urban transport arrangement policies to support the achievement of sustainable transportation. Journal of Contemporary Governance and Public Policy, 5(1), 1-18.
Bahloul, W. (2018). Short-term contrarian and sentiment by traders’ types on futures markets. Review of Behavioral Finance, 10(4), 298-319.
Banks, N., Lombard, M., & Mitlin, D. (2019). Urban informality as a site of critical analysis. The Journal of Development Studies, 56(2), 223-238.
Bates, M. and Osibanjo, O. (2019). Management of electronic waste in africa., 137-165.
Batistic, P., Dietz, T., Börner, J., & Damm, Y. (2024). Explaining compliance with voluntary sustainability standards: a case study from colombia's coffee belt. Sustainable Development, 33(1), 1417-1440.
Bawa, F. and Boachie, C. (2024). The impact of informal tax education on reporting compliance: mediation role of general tax knowledge within the informal sector of ghana. International Journal for Multidisciplinary Research, 6(6).
Boels, D. (2014). It's better than stealing: informal street selling in brussels. International Journal of Sociology and Social Policy, 34(9/10), 670-693.
Boghossian, J. and Marques, J. (2019). Saving the canadian fur industry’s hide: government’s strategic use of private authority to constrain radical activism. Organization Studies, 40(8), 1241-1267.
Brown, A., Lyons, M., & Dankoco, I. (2010). Street traders and the emerging spaces for urban voice and citizenship in african cities. Urban Studies, 47(3), 666-683.
Brown, A., Msoka, C., & Dankoco, I. (2014). A refugee in my own country: evictions or property rights in the urban informal economy?. Urban Studies, 52(12), 2234-2249.
Bruijn, A., Feldman, Y., Folmer, C., Kuiper, M., Brownlee, M., Kooistra, E., … & Rooij, B. (2022). Cross-theoretical compliance: an integrative compliance analysis of covid-19 mitigation responses in israel. Administration & Society, 55(4), 635-670.
Callaghan, C. (2017). A test of satisfaction, experience and hours of work as mediators of the relationship between education and informal earnings. Journal of Economic and Financial Sciences, 9(1), 256-274.
Campbell, S., Hoey, A., Maynard, J., Kartawijaya, T., Cinner, J., Graham, N., … & Baird, A. (2012). Weak compliance undermines the success of no-take zones in a large government-controlled marine protected area. Plos One, 7(11), e50074.
Capacci, S., Mazzocchi, M., Shankar, B., Macias, J., Verbeke, W., Pérez-Cueto, F., … & Traill, W. (2012). Policies to promote healthy eating in europe: a structured review of policies and their effectiveness. Nutrition Reviews, 70(3), 188-200.
