Video: Reasons Why Businessmen Are Worried Footwear Investors Are Fleeing to India and Others

The Chairman of the Indonesian Footwear Association (APRISINDO), Anton J. Supit, has revealed developments and the impact of global turbulence on Indonesia’s footwear industry. Currently, Indonesia’s footwear exports still rely on the US and European markets, making the weakening purchasing power a challenge for the domestic footwear industry. Additionally, Indonesia’s investment climate, perceived as ‘less’ friendly to investors, is obstructing opportunities for the footwear sector—as a labour-intensive industry—to absorb a large workforce. Amid the US-China trade war, Indonesia should seize the chance to attract footwear investment, but problems with legal certainty regarding permits, environmental policies, labour, and disruptions from mass organisations remain issues. Currently, India and Bangladesh are becoming new attractive destinations for footwear investors, so Indonesia must address investment barriers to draw investors in. The global footwear export market potential reaches $400 billion, while Indonesia exports only $7 billion, leaving vast opportunities to attract investment. Moreover, Indonesia needs to strengthen the footwear industry ecosystem, including supporting industries like leather, shoelaces, and accessories, to bolster the sector.