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)