Shoe and leather goods show opens

Shoe and leather goods show opens

JAKARTA (JP): Some 90 local and foreign competitors in
manufacturing shoes and leather goods are currently displaying
their wares at a three-day exhibition at the Jakarta fairground.

Foreign participants of the exhibition, which opened to the
public yesterday, come from Hong Kong, South Korea, Taiwan,
China, Germany, France, India, Singapore and the United States.

Director for the development of general industries at the
Ministry of Industry and Trade, Chaerudin, officially opened the
trade show.

In addition to footwear and related-leather products, the
exhibition will also feature equipment for the production of
shoes and bags, and other leather-made products.

In his speech Chaerudin called on local footwear and leather
producers to improve the quality of their products.

"The improvement of the quality is the key factor to face
expected tighter competition in the coming years, especially when
the free trade takes affect," he said.

The leather and footwear industry will gain many advantages
from the free trade era, but could suffer losses if it does not
remain competitive against overseas products, he said.

The leather and footwear industry is one of Indonesia's
largest foreign exchange earners. Total exports from this sector
reached US$2.4 billion in 1995, and the government expects
annual export earnings from the industry to reach $7.3 billion by
1999.

Yamin Rahman, a director for small-scale industries, said that
90 percent of local leather and footwear industry was made up of
small- and medium-scale manufacturers.

"Small-scale manufacturers actually find it much easier to
enter the foreign markets as long as they are able to improve the
quality and designs of their products," he said.

Indonesian Tanners Association chairman Diono Heningsasmito
said that most association members still face many obstacles.

The sharp increase in the number of quality imported leather
has severely affected local leather processors, he said.

In a bid to improve the efficiency and the quality of the
local leather products, the association's members and a number of
chemical companies are currently building a leather industrial
center in Subang, West Java.

Chandra Wardhana, another executive of the association, the Rp
30-billion industrial center, which would occupy around 100-
hectare plot, is expected to begin operating sometime next year,
he said.

The center is designed to house up to 80 leather, footwear and
related product manufacturers, Chandra said. (04)