Indonesia’s shoe exports increase, but imports increase faster

Indonesia’s shoe exports increase, but imports increase faster

A specialist footwear industry development center run by Indonesia’s industry ministry has said the country’s footwear exports grew in 2016, but that the growth rate was dwarfed by the percentage increase in shoe imports into Indonesia.

Manufacturers in Indonesia exported 661 million pairs of shoes last year, which represents an increase in volume of 2.9% compared to 2015, government statistics have confirmed. However, 394 million pairs came into the country in 2016, a year-on-year increase of almost 17%.

Almost 45% of all the shoes that Indonesia imported last year came from China, with Vietnam as the second-most important country of origin. In terms of exports, the US was the most important market for Indonesian manufacturers.

Industry observers have said manufacturers have investigated the possibility of setting up new production plants in areas such as West Java, attracted by low labour costs there. However, poor infrastructure appears to have held these projects back.