While the domestic market remained sluggish, exports of Indonesia's footwear and shoe products show a more positive development. The Indonesian Footwear Association (Aprisindo) estimates that the nation's footwear exports rose 6.8 percent (y/y) to USD $4.7 billion in 2015. Based on the latest data from Indonesia's Trade Ministry, Indonesian footwear/shoe exports reached USD $3.66 billion in the January-October 2015 period, up 10 percent from exports in the same period one year earlier. Eddy Widjanarko, Chairman of the Aprisindo, added that exports have risen both in terms of value and volume.

Read more ›

Foreign investors continue to be concerned about rapidly rising minimum wages in Indonesia. In Indonesian media it was reported that a total of sixteen investors, mostly from South Korea and Japan, cancelled their plans to establish footwear factories in Indonesia due to uncertainty over Indonesian minimum wage growth. In the last couple of years, minimum wages in Indonesia have grown sharply, possibly as a result of politicians looking for popular support ahead of regional elections.

Read more ›

Domestic sales of footwear in Indonesia declined 20 percent (y/y) to IDR 4.8 trillion (USD $393 million) in the third quarter of 2014 according to data from the Indonesian Footwear Association (Asosiasi Persepatuan Indonesia, abbreviated Aprisindo). Meanwhile, exports of Indonesian footwear declined as well but not as much as domestic sales. In fact, in terms of value, footwear exports increased due to the rupiah exchange rate that has depreciated considerably against the US dollar.

Read more ›