Bags / Shoes & Accessories

Recently, the Indonesian Business Daily reported:

According to the Indonesian Footwear Association (Aprisindo), more than 100 shoe factories have moved to Central Java in the Congtangerang and Bekasi Industrial Zones in the past four years.

Eddy Widjanarko, President of Aprisindo, stated that the reason for the relocation was lower wages in the Central Java region (UMR). He also expects that factory relocation will continue to occur in the next few years. "Almost all the relocation factories have increased the number of employees. It is possible that the shoe industry will move to Central Java in the next three to four years."

He continued that the shoe factories in Tangerang and Bekasi are still at present and will reduce production capacity or even close business. At the same time, increase the number of employees because wage efficiency promotes increased productivity in export-oriented industries.

He said that in 2021, the export target is set at 5.2 billion U.S. dollars, or an increase of 8.3% from the 4.8 billion U.S. dollars in 2020.

Firman Bakrie, executive manager of Aprisindo, said that in the peak shopping season at the end of 2021, the shoe industry is optimistic about the growth in performance.