Indonesia eyes $2 billion from shoe exports this year<\/p>\n
JAKARTA (JP): Indonesia will likely earn US$2 billion from
\nexports of shoes this year, up from $1.7 billion in 1999, thanks
\nto improving political climate in the country, the Indonesian
\nFootwear Association (Aprisindo) said on Tuesday.<\/p>\n
Aprisindo secretary-general Djimanto said foreign buyers were
\nnow more confident about Indonesia following the election of
\nPresident Abdurrahman Wahid's government in October.<\/p>\n
They can see that security has improved and the President's
\nextensive overseas travel has helped regain their trust. This
\ngovernment is better than the last one, Djimanto said.<\/p>\n
Shoe exports slumped following the financial and political
\ncrises in Indonesia, from a peak of $2.2 billion in 1996 to
\n$1.6 billion in 1997 and to $1.2 billion in 1998.<\/p>\n
Djimanto said trade financing remained a major problem for
\nsome producers because locally issued letters of credit were
\nstill rejected by foreign banks due to the erosion of confidence
\nin the Indonesian banking system.<\/p>\n
Most companies circumvented the problem by opening an escrow
\naccount and using telegraphic transfers. \"Of course this depends
\nlargely on trust and the company's track record,\" he said.<\/p>\n
Aprisindo's 91 active members currently have orders for 35.8
\nmillion pairs for the first six months of 2000 and Djimanto is
\noptimistic orders will reach 130 million by the end of the year.<\/p>\n
The association's 87 active members produced 100.81 million
\npairs in 1999, including top line models such as Nike, Reebok,
\nFila, and Adidas.<\/p>\n
Djimanto said that about 10 percent of the association's
\nactive members, mostly small producers in the Greater Jakarta
\narea, would likely apply for exemption from the official minimum
\nwage rule when the government hikes the levels beginning April 1.<\/p>\n
Official minimum wages will increase between 15 and 55
\npercent. In Jakarta, the monthly minimum wage will rise to Rp
\n286,000 ($38) from Rp 231,000.<\/p>\n
Companies unable to pay the minimum wages could apply for
\nexemption, but they have to open their books to government
\nscrutiny.<\/p>\n
Djimanto has appealed to members to intensify communication
\nwith their employees to minimize the likelihood of disputes. (10)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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