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.
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.
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