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)