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Aprisindo sees 6-7% growth for Indonesia's footwear exports
Jan '18
Growth of Indonesian footwear exports is expected to remain in the range of 6-7 per cent year-on-year in 2018, according to the Indonesian Footwear Association (Aprisindo), which feels lack of free trade agreements (FTAs) with the European Union (EU) and the United States is a barrier to competing in the global market, especially keeping Vietnam in eye.

As Indonesian footwear shipments to both the EU and the United States are stagnant, while the same for Vietnam keep rising, Aprisindo recently urged the Indonesian Government to sign free trade deals with both and improve the country’s logistics costs through infrastructure development and a more conducive tax environment, a portal monitoring investments in Vietnam reported.

Import duties for Indonesian footwear shipments into the EU are 11 percent higher than their Vietnamese counterparts.

Indonesian footwear products are exported to 160 countries, the biggest markets being the EU and the United States, which account for about three-fifths of the country’s total footwear exports. The Middle East is also emerging as a strong consumer of Indonesian shoes.
Investment in Indonesia’s footwear industry particularly originates from China and South Korea.

Rapidly rising minimum wages between 2013 and 2015 and the domestic supply of raw materials, primarily leather and rubber, are other problems in Indonesia. Despite being one of the world’s leading natural rubber producers, Indonesia exports rubber for processing as domestic processing capabilities are insufficient. (DS)

Fibre2Fashion News Desk – India

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