Shoe exports predicted to increase by 25%

Shoe exports predicted to increase by 25%

JAKARTA (JP): The Indonesian Footwear Association (Aprisindo)
expects shoe exports to increase by 25 percent to US$1.5 billion
this year from $1.2 billion in 1998, an industry insider said on
Friday.

Aprisindo secretary-general Djimanto said the association had
earlier forecast a 17 percent drop in exports because overseas
buyers were worried about shipment delays due to political
instability and unrest in the country.

Aprisindo, however, has seen a steady rise in monthly exports
this year. Exports rose from $73.6 million in January to $84.5
million in February and $119 million in March.

The association attributed this rise to larger orders from the
United States, the United Kingdom, Japan and Germany.

Djimanto also said exports in the second quarter of the year
increased markedly, but the final numbers had not yet been
collected.

"We succeeded in convincing foreign buyers of our capability
by inviting them to visit footwear factories to see for
themselves how shoe shipments run smoothly and promptly.

"We have also been quite aggressive in disseminating market
information through newsletters and websites to overseas footwear
dealer associations," Djimanto said.

Aprisindo also urged the government to help the newly
established Indonesian Export Bank begin operations, and to speed
up debt restructuring so exporters would no longer encounter
problems obtaining financing.

"Letters of credit issued by Indonesian banks are still
rejected by most overseas banks," he said.

Aprisindo said 15 of its 178 member companies closed down
during the economic crisis and another 71 had temporarily halted
their operations, leaving only 92 of its member companies
currently in operation. (01)