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
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