Indonesia continued
for the development of leather industry, footwear and textiles with the Italian
government. This activity is done through the signing of a technical agreement or
Technical Arrangement cooperation in the leather and textile industry sector.
Industry Minister, Saleh Husin, signal a technical agreement at Indonesia
Pavilion – World Expo Milano. ̋l hope that through the signing of the Technical
Arrangement, Italian associations and entrepreneurs could follow it up by
investing in the leather, footwear and textile sector in Indonesia,” said
Minter of industry in Milan, Italy, on Monday (September 7).
In Indonesia, the three industries
have the characteristic of labor-intensive, capital-intensive and technology-intensive.
Because the development is expected to play an important role in improving the national
trade performance and in creating welfare for business operators, especially
the SME sector. So far the national leather products have been marketed to
various major export destinations, such as the United States, Belgium, Germany,
Britain and Japan. The number of leather tanning companies reached 67 units,
with an installed capacity of 250 million square feet, utilization rate of 48%
percent, and number of workers absorbed at 7.230 people.
Meanwhile, currently the number of
national footwear industry reaches 394 companies with an investment of IDR 11.3
trillion in 2014 and absorbs a workforce of approximately 643 thousand people.
Footwear industry exports continue to increase, where in 2014 the national
footwear export value reached 4.11 billion, or increased 6.44 percent from the
previous year at USD 3.68 billion. Similarly, Indonesia textile & textile
products have an important role as foreign exchange earner and national
clothing provider. These labor-intensive industries have absorbed workers at
10.6 percent of the total manufacturing industry labor force. ̋This cooperation
is a chance for us to learn from, to have dialogue with and in the future to
attract investment from Italy, because they have enormously driven the business
sector oriented to leather-based industry, and mainly supported by many small &
medium industry sectors”, he said. In Italy leather-based industries are mostly
located in Vigevano, Tuscany, and Marches.
Since 2003
Pioneering of the footwear industry development partnership between the two countries has been conducted since 2003 by establishing the Indonesia Footwear Service Center (IFSC). one of the initial goals the establishment of the service center is to support the development of footwear design and technology in Indonesia, but because of the Lapindo mud disaster in Sidoarjo, the Italian aid project plan has not been implemented.
The project was finally funded by
the Directorate General of small and Medium Enterprises of the Ministry of
Industry and was renamed the Indonesian Footwear Industry Development Center
(BPIPI)”, said Saleh Husin. Cooperation for a broader industrial development
with Italy has also been carried out since 2012. The focus of the cooperation
is technical and investment cooperation for textile products, leather,
components and spare parts and high-tech industries.
The forms of cooperation are set
forth in the Memorandum of Understanding on Cooperation in the Field of The
Development Of Industrial Sectors signed on December 12, 2014. “The signing of
these agreement is expected to be the legal basis for the implementation of
technical cooperation and investment in industry between the Ministry of
Industry and Italian government, which is currently being built”, he concluded.
The Minister of Industry appreciated
various parties who realized the implementation of Technical Arrangement on
Cooperation on Leather and Footwear Sector and Technical Arrangement on
Cooperation on The Textile Sector. The signing ceremony was followed by the
Minister of Industry by holding a one-on-one meeting with Association of Italian
Leather and Footwear Industry Association (ACIMIT). The Minister also conducted
similar meeting with the Chamber of Commerce of Vicenza.
Investor Forum
A visit to Milan is also used by
Minister of Industry to strengthen communication with Indonesian and Italian
business through Indonesia Investment Forum held by the Investment Coordinating
Board (BKPM). This moment becomes on opportunity for manufacturing industry
cooperation between the two countries. “We hope that this meeting will become a
forum of consolidation and synergy for the increase of industrial relations
with Italy, which then will be able to respond to global economic challenges on
the growth of the manufacturing industry in Indonesia,” said Saleh Husin.
Business New - September 11, 2015
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