Indonesia’s shoe production now accounts for about 30% of global output, ranking the world’s top six export of footwear. Korea Changshin Group has invested 60 million US dollars in Indonesia’s West Java island 加特鲁 city built a new shoe, Indonesia Industry Minister Saleh Husin attend the inauguration shoe. Reportedly, the shoe factory annual production capacity of 15 million pairs, will provide more than 5,500 jobs. The shoe products will be exported to Europe, the United States and other Asian countries. Saleh Husin spoke highly of the importance of the shoe that it will vigorously promote the exports of Indonesia’s non-oil and gas products.
“Indonesia’s investment” reported recently, the footwear industry is a key industry in Indonesia, the development of the footwear industry can not only improve the Indonesian government’s foreign exchange earnings, and as a labor-intensive industry, which can also provide ample employment opportunities for local residents. Currently, Indonesia’s footwear products are mainly exported to the United States, Belgium, Germany, Britain and Japan.
2011-2013, the average annual growth rate of the Indonesian Footwear investment amount of 4.7%. In 2013, the Indonesian Footwear 10.7 trillion rupiah total investment, $ 836 million combined. Saleh Husin said that Indonesia’s shoe production now accounts for about 30% of global output, ranking the world’s top six export of footwear.
In 2014, the Indonesian footwear exports amounting to 4.1 billion rupiah, an increase of 6.4 percent, the Indonesian government in 2014 failed to achieve the exports target of Rp 5 billion, in part due to this result is that some foreign divestment. Earlier this year, sixteen investors, mostly from Korea and Japan, due to the increase in minimum wages in Indonesia uncertainty canceled the plant’s investment plans in Indonesia. In recent years, Indonesia’s wages increased rapidly, which also caused some foreign companies a serious burden. This is the cheap labor of foreign investment in the construction of the main reasons Indonesia, and for this reason, dozens of footwear manufacturers have moved their factories in East Java or other ASEAN member countries, such as Cambodia and Vietnam, where labor costs are lower.
Another factor affecting the Indonesian footwear industry is a lack of raw materials, leather and rubber. Despite being one of the world’s leading natural rubber producing countries, Indonesia is the lack of energy processing of natural rubber processing equipment, which restricts the export of rubber.
