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Niche footwear companies prefer Indonesia

06
Mar '06
European Union (EU) has imposed extra quotas on Chinese and Vietnamese footwear products, which in turn has benefited the Indonesian footwear industry.

International footwear giants including Nike, Reebok and Adidas are all placing their orders on Indonesian suppliers.

Harjanto, Chairman, Indonesian Footwear Producers Association (Aprisindo), informed that Adidas had set up two new plants labeled, PT Poong Won Indonesia and PT Spotec where as Puma will re-start its production operations in the country.

Indonesia's footwear export went up from US $1.32 billion to $1.5 billion in 2005 and is expected to even better this year.

Domestic sales reached upto 4.5 trillion rupiah or $489.9 million in 2005 as compared to 4 trillion rupiah $435.5 million booked in the previous year.

The Chairman said that the trade had improved due to talks with countries like South Korea and other European nations, however, the government still had several concerns regarding labour regulations, financial issues and import of leather.


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