The footwear industry was one of the most strategic sector because it could accommodate numerous workers, fulfill the need for footwear at home and contribute non oil-gas income significantly.
Data of the Ministry of Industry had it that the total value of footwear sales kept increasing with average surplus of 2.84. By end of 2014 surplus of footwear trading was USD 3,7 billion. With that amount of income, Indonesia should be able to fulfill around 34% of global need for footwear.
Admittedly Indonesia’s 3% share of footwear the in global market must be increased. For that matter the Ministry of Industry Saleh Husin stated in on Tuesday (4/8) that he planned to promote footwear industry to expand share in the global market.
Minister Saleh Husin saw that export performance of footwear was constantly improving. Last year, total export increase of national footwear was posted increase of national footwear was posted at 6.44% against the year before. So far the export destination at for national footwear were among others the USA, Belgium, Germany, England and Japan. Saleh said it was mandatory for players of the footwear industry to use local raw materials especially tapped from nature.
Investment wise the Ministry of Industry reported that investment in footwear industry tend to increase each year. Through the period of 2011 – 2014 the average increase was posted at 4.74%. Last year investment in footwear industry was Rp.10,7 trillion, an increase of around 1.25% against the previous year and was able to accommodate 643,000 workers.
Therefore production capacity must be increased so national footwear industry as source of state’s forex income could grow. The Minister reminded that Indonesia with population of more than 240 million was a prospective market attractive to investors to invest and develop their business in Indonesia.
For that matter the Government was taking strategic measures to control import and secure domestic market through non tariff barrier policy like mandatory SNI certification, P3DN, and regulating import of ready goods. “The policy was supportive to the business world” Saleh said.
Sales stated that the Government was taking special measures to strengthen competitiveness of the footwear industry like protecting intellectual rights of footwear producers, harmonization of taxation system and enhance national branding.
Meanwhile chairman of APRISINDO Eddy Widjanarko disclosed that the footwear industry was in fact highly promising as supporter of national export. Supposedly national footwear industry was able to supply the world with footwear of high quality, but the national footwear industry was still handicapped by many factors like high production cost and demonstration by labor unions to demand high wages.
To restore national footwear industry, increase of UMP Minimum Wages could be set up the measurable way. Besides the industry needed Government support in relocating their factories that they could be invigorated. “Not less important is betterment of infrastructure of harbors to smoothen export” Eddy concluded. (SS)
Business New - August 7, 2015