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)