Surabaya, East Java (ANTARA) - Indonesia's footwear industry has the potential to boost the nation's economy to a global level, according to an industry official.
"As of the second quarter of 2024, the national footwear industry's performance grew by 3.92 percent compared to the same period last year," stated Riefky Yuswandi, Secretary of the Directorate General of Small and Medium Industries at the Ministry of Industry.
During the Indonesia Footwear Creative Competition (IFCC) in Surabaya on Sunday, Yuswandi referenced data from the 2023 World Footwear Yearbook, highlighting that Indonesia ranked among the top five footwear producers globally, with 807 million pairs manufactured last year.
Of the total production, approximately 445 million pairs, or around 55 percent, were exported, showcasing Indonesia's substantial productivity and capacity, Yuswandi noted.
He projected that the country’s footwear exports this year could surpass the US$6.4 billion achieved in 2023. From January to June alone, footwear exports reached a value of US$3.7 billion.
"We anticipate an even larger figure in the second half of this year," he added.
While the export market for Indonesian footwear looks promising, Yuswandi acknowledged that domestic market potential remains underutilized.
Only 362 million pairs were sold domestically, a modest figure given Indonesia's population of 282 million. This means, on average, each person buys just one or two pairs annually.
To address this, Yuswandi emphasized the need for greater innovation to tap into the domestic market.
He also highlighted the Ministry of Industry's machinery restructuring program, designed to support local creative industries, including footwear.
Through the program, entrepreneurs can receive a 25 percent reimbursement on the cost of imported machines and 40 percent on locally made machines.
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Translator: Astrid Faidlatul H, Resinta Sulistiyandari
Editor: Anton Santoso
