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China Factory Investment Ready Shoes

Jakarta (ANTARA) - Indonesian footwear Association revealed today there has been some China company received permission to invest the principle from BKPM shoe factory and its supporting materials.

"Permission principle already exists, as usual from China," said Secretary-General (Aprisindo) Binsar Marpaung in Jakarta, Tuesday.

Binsar add new it will ask for information from the Investment Coordinating Board (BKPM) related to the number of firms and the value of the investments into Indonesia.

According to him, besides the construction of the shoe factory will also be no development of supporting materials for the shoe factory as raw material of synthetic leather and shoe laces.

"So far, we have difficulty supporting materials. No shoes upstream industry. Approximately 60 percent of imported raw material for making shoes," he said.

Binsar say with any factory support material for the shoe industry, the cost of shoe production in Indonesia will be more expensive and more competitive in the domestic market and export markets.

"We expect footwear export target of two billion U.S. dollars this year could be achieved," he said.

Country Indonesian footwear exports are to EU countries, U.S., Japan, China, and ASEAN countries.

During the last four years, the value of footwear exports increased significantly, from 1.4 billion dollars to 1.8 billion U.S. dollars.