Three USA Shoes’s Principals investment in Indonesia

Author: Sales / Category: Footwear News, Press Realease

athletic shoes, women sport shoes

JAKARTA. This year the Indonesian shoe industry will be supported  investors with the advent of shoes that comes from abroad.

Chairman of the Association of Indonesian footwear (Asprisindo) Eddy Widjanarko said that this year there are at least three investors from the United States shoes (USA) who are interested in investing in Indonesia. They are the principal brands of shoes, New Balance, Nike, and Payless ShoeSource Inc..

The inclusion of these three investors, could be an indication that the Indonesian shoe industry can still compete. Unfortunately, Eddy did not know how much investment will be disbursed each of these investors. The bright, according to Eddy, the estimated production from these companies is around 24 million million pairs per year. That is, in the first year of the three principals were productive, the value of disbursed investment could reach U.S. $ 480 million. Most of their products for export.

Actually, at this time, New Balance has been holding local shoe manufacturers, namely PD. Beyond that, New Balance plans to build his own factory in Tangerang area.In the new factory, New Balance will produce 500,000 pairs of shoes per month.

While the principals of Nike shoes would seek an order to a local shoe company. Unfortunately, Eddy was reluctant to reveal who’s going to be a partner. Over the years, Nike took one of the companies owned by businessman Hartati Murdaya. But the contract between both companies broke up since late 2007. ”While Payless is preparing land in Surabaya factory and leather shoes factory in Tangerang,” said Eddy.

Budi Irmawan, Multifarious Industries Director of the Ministry of Industry confirmed the investors’ shoes that will go to Indonesia. ”I’ve received the report. There are three investors who will come in, two in Tangerang and one in Surabaya. Now they’re taking care of its operational license,” he said.

The presence of three skaters this foreign origin, Budi hoped, could boost Indonesia’s footwear market from 2% in the last year to 3% this year. Unfortunately, current labor shoe factory is still minimal. In fact, the labor requirement for the three investors are around 28,000 workers. ”The need for workers in Greater Jakarta alone about 22,000 workers, the remaining 6000 workers to Singapore,” said Budi.

For this year, Eddy is also targeting the export value of most local shoe can not be maintained as the year 2009 and that about U.S. $ 1.7 billion to U.S. $ 1.8 billion.

Well, that target will be reached, according to Eddy, Aprisindo will nurture entrepreneurs of small and medium-sized shoe. The trick is to do with the coaching system in order to foster this industry to survive.

Footwear manufacturer, wholesaler and exporter optimistic archieve US$2 billion in 2010

Author: Sales / Category: Footwear News, Press Realease

sbres 1258104867 0 gambar grafik yang meningkat  150x150 Footwear manufacturer, wholesaler and exporter optimistic archieve US$2 billion in 2010

JAKARTA, Indonesia. The local shoe industry conditions increasingly improved in II quarter of this year. Therefore, the Ministry of Industry (Depperin) is optimistic exports of shoes better than last year.

Government targets footwear exports in 2010 up to US$ 2 billion, up from last year are estimated at only US$ 1.8 billion. However, the export value in this year predicted stagnant, the same as 2009.

The increase in exports driven by foreign buyers; among others from the United States and the European Union again glanced shoe products from Indonesia.

They had reduced demand in late 2008 and early 2009 as the impact the global economic crisis. “I am optimistic that exports at least equal to achieve last year or at least U.S. $ 2 billion,” said Director of Industry Aneka Directorate General of Metal, Machinery, Textile and Multifarious Depperin Irmawan Budi, (2 / 11).

According to Budi, foreign buyers increasingly believe in shoes made in Indonesia because the product is now more competitive in terms of price and quality.

This happened after a local manufacturer of machinery restructuring program footwear industry that this year a running budget of Rp 55 billion. Restructuring program in the form of a replacement machine old machine to make producers more efficient and productive.

No wonder, the government also plans to continue the restructuring program in 2010 machinery. Another program, the government would hold the training, promotion facilities, raw material supporting policies such as determining shoes Benchmarks Export Price (HPE) skin, support equipment, as well as cooperation with that Asosiation industry. “We hope the export target is achievable,” continued Blake.

Business Owner are even more optimistic than the government. They sure could increase shoe exports up 20% in the this year. From the archivement in 2009 of US$ 1.8 billion.

Chairman of Indonesia Shoes Association (Aprisindo) Eddy Widjanarko mentioned, there are several principal foreign shoe brand that is exploring the addition of orders such as Nike and Adidas.

Local Market Increased too

Not only the export, the shoe market in the country not much different circumstances. Demand in the domestic market shoes will continue to increase as improvement of people’s purchasing power. “We hope that domestic market conditions improve. So the condition of balance between export industries and domestic,” said Budi.

In 2010, the domestic market estimated to reach Rp 27 trillion – Rp 30 trillion. Up from this year estimated that only Rp 25 trillion (Indonesian Currency). ( From Kontan Magazine)