Rangga D. Fadillah, Jakarta – Indonesia's footwear exports may top US$3.2 billion (Rp 28 trillion) in 2011, up 52 percent from $2.13 billion in 2010, thanks to the recovering global economy, according to the Indonesian Footwear Association (Aprisindo).
Such an increase would further improve the nation's reputation as a leading shoe producer, Eddy Widjanarko, the association's chairman, said in Jakarta on Wednesday Indonesia is the world's third largest footwear producer, behind China and Thailand.
"Other than the recovering global economy, a strong flow of foreign investment into our nation also contributed to the predicted growth in exports," Eddy said.
Five large foreign footwear makers currently run factories in Indonesia, he said, adding that each had invested between $60 and $70 million in Indonesia.
"Each company employs around 10,000 workers. We're optimistic that this year the business prospects will be very bright," he said as quoted by detikfinance.com news portal.
Eddy said Indonesia could boost production from around 300 million pairs of footwear in 2010 to 400 million in 2011.
The Indonesian footwear industry is centered in several large cities in Java, such as Tangerang, Banten; Bandung, Bekasi, Karawang and Sukabumi in West Java; and Jombang, East Java. The Industry Ministry said recently that investors from China, South Korea and Taiwan would build 22 footwear factories in Indonesia in 2011 that would create around 60,000 jobs.
South Korea-based Chang Shin launched its $25 million, recently completed footwear factory in Karawang in January. The factory was estimated to employee around 5,000 people.
Eddy was upbeat that Indonesia's footwear exports would top $5 billion in the next three years.
According to Industry Ministry, the Indonesian footwear industry operated at about 67 percent capacity in 2010 and produced $3.27 billion in products. Indonesia's 388 footwear companies currently employed 454,359 people.
Eddy said that as the third largest footwear exporter in the world, Indonesians should be proud of local shoe products.
"Our people should be more proud of our own products. We can already produce world-class shoes. The world has acknowledged the quality of our products, so our exports can continuously increase," he said.
The Investment Coordinating Board (BKPM) previously said that nothing could stop Indonesia from leapfrogging China to become the world's second biggest footwear exporter within two years.
Separately, the BKPM recommended that the government accelerate development of primary infrastructure such as power plants and roads to boost investor confidence in conducting business in Indonesia.
Poor infrastructure has long been a major reason why investors cancel investment plans in the nation.