Local Products Ready to Expand to Asian Market

Head of the Indonesian Footwear Study Center (BPPI), Heru Budi Susanto, SE, MT, said that export performance was still dominated by the American and Asian and European markets with sports shoes.

Global footwear industry competition is still focused on Asia, the top 4 footwear production is still centered in China, India, Vietnam, and Indonesia. In Indonesia, the distribution of medium and large industries is still dominated in West Java, Central Java and East Java with a range of 300 business units with a large medium scale based on observation/analysis/referring to the data, the trend of domestic shoe consumption is still positive, export performance also shows good performance. The good one. The export trend in 2018 showed a positive number, this was influenced by the performance of large medium-sized manufacturers which had started to produce optimally after 2-3 years previously moving from cities with high UMR to areas with low UMR.

Heru Budi Susanto, SE, MT said that the challenge of the shoe/footwear industry in Indonesia, in the future, is still the issue of the strength of local brands to boost domestic consumption. The quality of local brands has been getting better with the support of online and internet media and the touch of the millennial generation in terms of design. Export-oriented production bags are still on the island of Java (Jabar, Banten, Central Java and East Java), he told Bisnis Bandung (BB), 17/05/19.

The export target for 2018 to 2019 rose positively. One of the ways for the government to facilitate the needs of large and medium manufacturing workers is with a 3 in 1 program, namely training, absorption and competence. This is very helpful in fulfilling the ready-to-work workforce that the manufacturing industry, especially footwear will absorb. The government will continue to mobilize local industries to activate local brands by collaborating with social media influencers in the short term. In the medium term, the government will continue to campaign for the use of local brands, especially for young consumers, and in a long time, the government will focus on encouraging local brands to expand into the Asian market.

The policy to boost/suppress/develop/optimize shoe production, namely the "Industry 4.0 Making Program". The government continues to encourage the program, followed by the footwear industry to be prepared for the industrial revolution 4.0, including the provision of better internet infrastructure, provision of competent human resources and strengthening of the downstream manufacturing sector.

Export performance is still dominated by the American and Asian and European markets with sports shoes. Global footwear industry competition is still focused on Asia, the top 4 footwear production is still centered in China, India, Vietnam, Indonesia. In Indonesia, the distribution of large and medium-sized industries is still dominated in West Java, Central Java and East Java with a range of 300 business units on a large medium scale. "So far, what programs have been rolled out by the government for advocacy/development of the shoe/footwear industry in Indonesia? The focus of the campaign and advocacy is on optimizing domestic market consumption by using local brands," he concluded to BB.