Indonesia’s footwear industry is emerging as a powerful force in the global market, with potential to significantly boost the nation’s economy. This comes as the industry experiences consistent growth, buoyed by increased exports and domestic market opportunities.
According to Riefky Yuswandi, Secretary of the Directorate General of Small and Medium Industries at the Ministry of Industry, the sector is positioned to further elevate Indonesia’s economic standing on the world stage.
Yuswandi shared that the national footwear industry has seen a notable improvement in its performance. As of the second quarter of 2024, the industry grew by 3.92 percent compared to the same period in 2023.
These promising figures were discussed during the Indonesia Footwear Creative Competition (IFCC) in Surabaya, where Yuswandi shed light on the growing influence of Indonesia in global footwear production.
Citing data from the 2023 World Footwear Yearbook, Yuswandi proudly pointed out that Indonesia is now ranked among the top five footwear producers worldwide, having manufactured an impressive 807 million pairs last year. Out of this total, a staggering 445 million pairs, or approximately 55 percent, were destined for the international market, underscoring Indonesia’s export capacity and production efficiency.
With the industry’s export success, Yuswandi confidently projected that Indonesia’s footwear exports could exceed the US$6.4 billion recorded in 2023.
Already, between January and June 2024, the value of footwear exports reached an astounding US$3.7 billion, setting the stage for an even stronger performance in the latter half of the year.
“We anticipate an even larger figure in the second half of this year,” Yuswandi remarked, expressing optimism about the industry’s sustained momentum.
Despite Indonesia’s international achievements, the domestic market remains largely untapped.
Out of the 807 million pairs produced last year, only 362 million pairs were sold locally, which is relatively low given Indonesia’s population of 282 million.
On average, Indonesians purchase just one to two pairs of shoes annually. This signals a significant opportunity for growth in the local market.
Yuswandi stressed the need for greater innovation in order to unlock the potential of the domestic market, where demand for footwear could be much higher.
In a bid to support and further stimulate the growth of the footwear sector, the Ministry of Industry has implemented a machinery restructuring program aimed at aiding local creative industries, including footwear manufacturers.
Under this program, entrepreneurs can receive 25 percent reimbursements for the cost of imported machines, and 40 percent reimbursements for machines produced locally.
This initiative is expected to foster the growth of local industries, enhance productivity, and further strengthen Indonesia’s position as a global footwear powerhouse.
In conclusion, with its steady growth, strong export performance, and support from the government, Indonesia’s footwear industry is on a promising path to achieving greater success on the global stage. However, the underutilized domestic market presents a key area of focus for the future. As the industry continues to innovate and modernize, Indonesia is well on its way to cementing its reputation as one of the world’s leading footwear producers.
