The Indonesian Shoe Industry Association (Aprisindo) has set a target. This year, shoe exports increased by 10% from last year’s US$5.1 billion to US$5.6 billion. The target set is to catch up. Competing country Vietnam.
Last year, Vietnam’s shoe exports increased by 10.5% to US$16.5 billion. In the next five years, The national shoe production and export target has been set to exceed 10 billion US dollars.
Budiarto Tjandra, Chairman of Foreign Relations and Sports Shoes Development of the Indonesian Footwear Association ) said that export growth this year will be driven by the improvement in world demand and the completion of the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations. In recent years, global demand for footwear, which is a necessity in addition to clothing, food and housing, has continued to increase.
He said in Jakarta, “In order to catch up with Vietnam, exports must increase by 10% this year, and then the third It must grow by more than 10% in the first and fourth years, so that it must double in five years. Currently, our benchmark is Vietnam’s growth.”
Budi explained that this year, once every 8 years, the total export value of the shoe industry has increased by 2 places According to statistics, from 2002 to 2010, shoe exports increased by 118% and from 2010 to 2018 by 104%.
He admitted that last year, the export target of 10% was not reached, reaching only 4.13%, but For the first time, national shoe exports exceeded US$5 billion.
He believes that currently, Vietnam and the EU have signed a free trade agreement, but it has not yet taken effect. But this has resulted in good sentiment towards buying from Vietnam. “They know that it will bring profits in the long term, so they are ready to buy goods from Vietnam. As a result, Vietnam’s exports are growing very rapidly.”
Budi added that Vietnam controls 12% of the EU shoe market, while my country only accounts for 4%. Therefore, Budi hopes that this year, the Indonesia-EU Comprehensive Economic Partnership Agreement negotiated with the EU can be completed. Because there is no comprehensive economic cooperation (CEPA), my country’s shoe exports to Europe are subject to an import tax of 11%, resulting in the production cannot compete with Vietnam.
Budi emphasized that IEU-CEPA can also increase investment in my country’s shoe industry because the agreement promotes China’s shoe industry The relocation of industries to my country will absorb a lot of labor force.
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