Three USA Shoes’s Principals investment in Indonesia

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.
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