Buyers of Indonesian shoes shift orders to China

Buyers of Indonesian shoes shift orders to China

JAKARTA (JP): Many importers of Indonesian shoes have shifted
their orders to other countries such as China and Vietnam due to
uncertainty in the security situation in the country, according
to the Association of Indonesian Footwear Producers (Aprisindo).

Djimanto, the secretary-general of the association, said that
the buyers feared that the uncertainty in the country's security
situation could disrupt the delivery of the shoes.

"Although the Indonesian-made shoes remain more competitive,
they are still reluctant to place new orders due to the
uncertainty of delivery," Djimanto was quoted by Bisnis Indonesia
as saying on Tuesday.

He said that shoe importers in Germany, Switzerland, Italy,
Japan, South Korea, and Singapore had expressed their concern
over the situation in Indonesia during his recent visit to those
countries.

Djimanto said that at present importers preferred to order
shoes from China and Vietnam where delivery was no problem.

Some foreign shoes producers in Indonesia also have intentions
to relocate their factories to other developing countries such as
Vietnam, which offers a more favorable investment climate.

"Shoe production in Vietnam is on the increase while it shows
no progress in Indonesia," he said.

Djimanto said exports for the first nine months of the year
2000 reached $1.159 billion, up from $1.055 billion during the
same period in 1999. (03)