Indonesian footwear industry is expecting to generate around $1.7 billion from export as the demand of many importers from China and Vietnam is continously growing, an industrial sources said.
According to Eddy Widjanarko, President, Indonesian Leather and Shoe Association, country is winning market share of Vietnam and China, as these two countries are suffering from anti–dumping lawsuits on leather shoes.
However, Widjanarko warned that bureaucratic mechanism in Indonesian footwear industry pushes up production cost to highest rate in South East Asian region, for example, Investor has to spend 50 million Rupiah ($5,500) to obtain operation license, much higher than in Vietnam ($2,750), Malaysia ($1,980) and Singapore ($1,210).
Since EC's anti–dumping lawsuit started on Vietnam, there have been four world famous footwear manufacturers and 11 other small ones shifting their production units to other countries, including Indonesia.
Fibre2fashion, News Desk - Vietnam
marketing@alchempro.com
