TEMPO Interactive, Jakarta:The Indonesian Shoe Producers Association chairman, Eddy Widjanarko, said local shoe production was being squeezed out by imported products from China. "We are concerned that the crisis will force China to dump their products worldwide, including in Indonesia," he said yesterday.
Besides reducing the prices, the Chinese government is imposing a 17 percent rebate system on exported products. Moreover, Eddy said, many illegal products are circulating without paying duties. "The data is unclear and hard to track. About 60 percent of shoes are made overseas, meanwhile the Customs and Excises failed to record that much."
Eddy also indicated there might be cheating in relation to the duties. "A document can say the product is US$2, while the real price is US$10," he said. As a result, China-made shoes are paying cheaper VATs. Eddy called on the Customs and Excises to intensify their inspection of documents relating to the imported shoes flooding the market. Shoes and leather exports last year topped US$1,7 billion.