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Indonesian footwear exports may see modest growth in 2012
Nov '11
The exports of footwear form Indonesia is likely to witness a modest growth in 2012 owing to the increased labour costs and the unfavourable global economic conditions.

Indonesian footwear exports may grow at 10 percent next year from the estimated shipments worth US$ 3.2 billion in 2011, which would be an increase of 27.94 percent year-on-year, according to an expert.

Indonesia exported footwear worth US$ 2.6 billion during this year until October, as per Indonesian Footwear Producers Association (Aprisindo) data.

The anticipated ten percent growth in footwear exports would be good considering the ongoing debt crisis in Europe. Even after achieving US$ 3.2 billion in export value, Indonesia will still account for less than 2 percent share in the world market.

Eleven footwear manufacturers from various countries including Australia, China, Italy, the Netherlands, South Korea, Taiwan and Vietnam have invested in Indonesia during the first half of 2011. This is likely to lead to higher production and may result in an increase in exports.

The current optimism of modest growth is due to the commitment of global brands like Adidas and Nike to continue to place their purchase orders with Indonesian manufacturers.

Footwear is a major item of Indonesian exports to the European Union and the United States. In 2010, about 42 percent of the country's footwear exports were destined to the EU, while 22.6 percent were towards the US.

Fibre2fashion News Desk - India

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