Sunset of our shoe industry<\/p>\n
The Indonesian shoe industry has suffered from a series of
\n"tragedies" that have affected its production. First, the sudden
\nincrease in utility prices early this year. None of the shoe
\nproducers was ready for the shocking fact that they had already
\nsigned contracts with foreign buyers.<\/p>\n
A loss was unavoidable! They had to accept a 10 percent loss
\n(on the total value of contracts) due to increased production
\ncosts.<\/p>\n
While the government's policy does not specifically support
\ntheir business, the shoe producers have found that production
\ncosts have steadily been increasing. No wonder several shoe
\nproducers have gone bust, leaving thousands of workers jobless.<\/p>\n
Now the U.S.-Iraq crisis has also threatened Indonesian shoes
\nin the international market.<\/p>\n
The most recent reports have said our (overseas) shoe
\ncontracts, which reached a total of US$750 million -- 60 percent
\nlower than this year's target -- must be renegotiated, as
\nshipping costs have risen due to the Iraq crisis.<\/p>\n
Our shoe exports have been dropping from one year to the next,
\nfrom US$1.672 billion in 2000 to an estimated $1.3 billion this
\nyear. China and Vietnam, with more qualified workers on better
\nwages, have become serious competitors in the world market.
\nThe governments of China and Vietnam are also helpful in terms of
\ntaxation rulings and stability in politics.<\/p>\n
Prayers alone will not be enough to deal with the impact of
\nthe Gulf crisis.<\/p>\n
-- Bisnis Indonesia, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/sunset-of-our-shoe-industry-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }