Footwear industry stands to gain

06 Mar '06

1 min read

Additional quota imposition planned by the European Union (EU) on Chinese and Vietnamese footwear products has led prominent footwear companies like Nike, Reebok and Adidas to increase their sourcing from Indonesia.

Adidas opened two new factories under the names PT Poong Won Indonesia and PT Spotec while global brand Puma is to restart operations, said Harjanto, Chairman, Indonesian Footwear Producers Association (Aprisindo).

Indonesia's footwear exports shot up $1.5 billion from $1.32 billion recorded last year and which is set to post better results this year.

Domestic sales climbed 4.5 trillion rupiah ($489.9 million) in 2005 compared to 4 trillion rupiah ($435.5 million) in previous year.

Trade Ministry's negotiations with South Korean and European businesses last year, helped industry to regain its market.

But, Government is yet to address labor regulations, financing problems and simplify leather import procedures, he said.

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