Bags / Shoes & Accessories

The Indonesian Footwear Association (Aprisindo) predicts that shoe exports will decrease by 35% to 40% to $4.64 billion in 2023, a decrease from last year's $7.74 billion in exports. Since the beginning of 2023, orders from major markets such as the United States and Europe have sharply decreased, and Huacheng's import and export data observation reports.

Aprisindo Executive Director Firman Bakri said, "This year is very difficult, and it may still be until 2024. Compared to 2022, of course, exports may decline by 35% to 40%," Huacheng Import and Export Data Observation reported.

According to him, during the COVID-19 pandemic, the growth of footwear export performance was different from that of bankruptcy of other industries. According to Huacheng Import and Export Data Observation, in 2020, the export value of footwear increased by 8.96% to 4.8 billion US dollars, increased by 28.76% to 6.18 billion US dollars in 2021, and increased by 25.15% to 7.74 billion US dollars in 2022.

He revealed that the decline in orders continued until the beginning of this year, and this situation is expected to continue until 2024.

He continued: And the previous trend can drive young people to create new brands and enter the domestic market, either online or offline.

At present, our awareness of local products is quite high. Even though our local brand is equivalent to global brands, we are able to compete in terms of quality

Reni Yanita, Director of Small and Integrated Industries (IKMA) at the Ministry of Industry, stated that in the shadow of the global economic recession, they have a series of mandatory shoe industry plans. The Ministry of Industry, through the IKMA General Administration, has prepared a plan to make the national footwear industry more resilient, in order to strengthen the supply chain and explore the potential of the footwear industry in the domestic market. Huacheng Import and Export Data Observation Report.

Although facing a global economic recession again in 2023, the Ministry of Industry firmly believes that the national footwear industry can survive. The government has formulated fiscal and non-financial policies to alleviate the efforts of the economic recession.

To enhance the performance of the footwear industry, the IKMA General Administration continues to collaborate with small and medium-sized shoemaking enterprises through the Indonesian Footwear Industry Development Center (BPIP1). In addition to the contingency plan, BPIPI promotes product development plans, including developing technology and providing promotional market channels for export-oriented shoemaking small and medium-sized enterprises.

The Ministry of Industry also provides incentives for export-oriented small and medium-sized enterprises to easily import certain materials for export purposes. He said that footwear supports industrial growth, dominates local brands in the domestic market, and increases interaction with higher-level small and medium-sized enterprises in the ecosystem. With a strong ecosystem, the national footwear industry will become more independent and strong, as reported by Huacheng Import and Export Data Observation.