|
Indonesia a shoe-in to become world's biggest exporter
|
|
|
|
|
|
|
|
Thursday, 29 July 2010 10:57
|
|
JAKARTA – Indonesia is expected to become the world's biggest footwear exporter when it overtakes Vietnam as the second biggest hub for the shoe industry in the next two years, says Antara news agency.
"Indonesia will overtake Vietnam as the world's biggest footwear exporter with exports estimated at US$2.1bil (RM6.7bil) per year," Chairman of the Investment Coordinating Board Gita Wirjawan said here yesterday.
Workers at an Indonesian shoe factory putting the finishing touches to their products.
"Indonesia is now able to produce more than 3 million pairs of shoes of famous brand such as Nike, Adidas and New Balance, per year," he said.
He said some producers of shoes of famous brands planned to relocate their industries from Vietnam and China to Indonesia.
However, he stopped short of revealing the names of the shoe producers and the amount of investment.
He said shoe producers had of late begun eyeing Indonesia as the basis of their industries because of some advantages including low wages, favourable labour regulations and conducive political and economic conditions.
Because of that, not only shoe producers but also textile and electronic companies were expected to relocate their plants to Indonesia, he said in the report picked up by Bernama.
Earlier, Chairman of the Indonesian Shoe Producers Association Eddy Widjanarko said two Korean shoe producers would build new plants in Indonesia at a cost of US$150mil (RM480mil).
The two companies which had so far produced shoes bearing Adidas and Geox brands would relocate their plants from Vietnam and China, he said.
Eddy said Adidas would build a new plant on 20 hectares of land in Serang, west of Jakarta, at a cost of US$100mil (RM320mil), and Geox was looking for 5.6 hectares of land in Pasuruan, East Java, for its US$50mil new plant.
"Adidas will have a production capacity of 850,000 pairs of shoes per year and Geox 1.2 million pairs per year," he said.
|
|
Last Updated on Thursday, 29 July 2010 11:10 |
