The Government continues to
spur the footwear industry which is able to absorb massive labor force.
Industrial development is done in order to boost exports and market share of
domestic shoe products in the global market. The Ministry of Industry recorded
that foreign exchange generated by the footwear industry is worth USD 4.11
billion or 2.33% of total national exports in 2014. In terms of employment opportunities,
this industry contributed job opportunities for 643 thousand people which is
equivalent to 4.21% of the workforce in the manufacturing industry.
In addition to footwear, the government also spurs other
labor-intensive industries, i.e. textiles and food & beverage industries.
“This proves that the government wants labor-intensive industries that the
government wants labor-intensive industries that employ a workforce in large
numbers to be continuously growing,” said Industry Minister Saleh Husin while
attending the launch of “Labor-Intensive Investment for the Absorption of
Indonesian Workers” program in Balaraja, Banten, on Monday (October 5).
The program held by the Investment Coordinating Board (BKPM)
was conducted at PT Adis Dimension Footwear plant and was attended by President
Joko Widodo. On that occasion, the President affirmed his optimism that the
Indonesian economy will continue to improve in line with the realization of
domestic and foreign investment, as well the launch of economic policy stimulus
package. “There are many opportunities in our country that can be turned into
investment that creates jobs,” said President Jokowi.
Keep Realizing Investments
The market share of Indonesian footwear products in the
world market was 2.85% in 2014 and was ranked 6th after China, Italy, Vietnam,
Germany and Belgium. This shows that the footwear industry likely to continue
to increase exports. Head of BKPM, Franky Sibarani, said that the government
would like to communicate to the public and investors that when there is
rampant news about layoffs, there are many labor-intensive companies who
continue to implement realization of investment projects and absorb workers.
There are 16 companies that consist of 11 labor-intensive
Foreign Investment (PMA) companies and 5 domestic investment (PMDN) companies
in West Java and Central Java. Labor absorption reached at least 121,285 people
in 5 years (2015-2019). The total value of investment plan is worth IDR 18.9
trillion and total realized investment worth IDR 11.4 trillion (until September
2015) with a total estimated value of exports amounted to USD 1.3 billion.
Companies engaged in the leather industry, leather goods and
shoes, are, among others PT Pou Yuen Indonesia, Chang Shin Reksa Jaya, Adis
Dinamika Sentosa, Feng Tay Indonesia Enterprises, Parkland World Indonesia,
Selalu Cinta Indonesia, and Seng Dam Jaya Abadi. While those engaged in the
textile industry are Sri Rejeki Isman, Jaya Perkasa Textile, Rayon Utama
Makmur, Nesia Pan Pacific Clothing, Eco Smart Garment Indonesia, Delta Merlin,
Dunia Textile, Delta Merlin Textile, Apparel One Indonesia and Jaya Perkasa
Textile. For the food and beverage industries, namely PT Kaldu Sari Nabati
Indonesia. “Labor-intensive industry operators still need new workers, such as
a garment factory in Boyolali. They are in shortage of 12 thousand employees,”
said Industry Minister Saleh Husin.
Ministry of Industry also continues Machinery/Equipment
Restructuring Program for Textile & textile product Industry, footwear and
leather tanning industries. This step was taken given the positive response
from the industry and other stakeholders. “The program is in the framework of
accelerating the improvement of industrial performance and labor absorption,”
said Director general of Chemical, Textile and Miscellaneous Industries at the
Ministry of Industries at the Ministry of Industry, Harjanto. Availability of
raw materials is also facilitated by sitting up a logistics base for cotton,
leather raw material centers and encouraging investment in dyestuffs and
auxiliary material industries. (E)
Business News - October 9, 2015
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