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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)