Indonesia'S Footwear Export Index Fell From 3.9 Billion Dollars To 3.6 Billion Dollars

As the world economic crisis and domestic policy barriers have reduced consumers' purchasing power, Indonesia's footwear industry has revised its export index this year from 3.9 billion dollars to 3.6 billion dollars.

Eddy Wijanarko, president of the Indonesian Footwear Association (Aprisindo), said that China shoes The producers reached an agreement to reduce the export target this year to 3.6 billion US dollars.

He believes that the revision of this indicator is democratic enough. It is expected that Europe and the United States will continue to have an impact on exports. In the first five months of this year, the export of shoe products only increased by 9% over the same period last year. "Growth is still affected by high-end shoe exports, such as Adidas, Reebok and Nike, while low-end shoe exports are relatively stagnant."

In fact, in recent years, Indonesia's shoe industry has recorded double-digit export growth, that is, 10% - 20%. At that time, the domestic shoe industry took advantage of the opportunity of the increase in Chinese workers' wages to inhibit the production performance of the shoe industry.

However, he would not elaborate on the implementation of shoe exports in the first five months of this year. In order to reach this target, Eddie can only be optimistic that it will export a large number of shoes to several ASEAN countries, such as Malaysia, Thailand and the Philippines. At present, it is expected that the shoes produced in China will dominate 2% of the world shoe market share.

In addition to the world economic crisis, several unclear government policies have led to a slowdown in the growth of shoe exports. Labor problems and constantly changing central and local government policies have affected the investment in this sector. "This obstacle has led the shoe industry to extend its investment in China."

In fact, competitors in China's shoe industry, located on the east coast of China, are planning to transfer their production bases to Vietnam and China. "That's because of the rising wages of Chinese workers."

Eddie said that it would be more difficult for the shoe industry to meet the production and export targets if the government still imposed a 10% value-added tax on imported raw materials. "After taxation, the return procedure is also very long."

In response to this complaint, the government will try to meet the demand for raw materials and energy that has always hindered the investment in this sector. Panggah Susanto, director of the Ministry of Industry's manufacturing infrastructure, said that with a large number of industrial investment plans, the government will try to meet the demand for raw materials.

He continued that some manufacturers were promoted to provide demand by changing from raw material processing to domestic processing/supporting product methods, which would promote large enterprises to process raw materials in industrial zones outside Java. "For example, the energy supply of production gas is the key to the industrial downstream process being vigorously promoted."