Yogyakarta-Australia Collaboration to Strengthen Leather Industry Supply Chain

The Special Region of Yogyakarta (DIY) is exploring collaboration with Australia to strengthen the leather industry ecosystem. “The main focus of this collaboration is to integrate the abundant availability of raw materials from Australia with the technical expertise and creativity in leather processing that is characteristic of DIY,” said the Indonesian Ambassador to Australia, Siswo Pramono, after meeting with the Governor of DIY, Sri Sultan Hamengku Buwono X, at the Kepatihan Complex in Yogyakarta on Monday, 30 March 2026. Siswo revealed that this initiative is a logical development from the long-standing trade relations in the livestock sector between the two countries. According to him, the strong foundation of cattle trade between Australia and Indonesia must be quickly advanced towards strengthening downstream industries. Siswo stated that this plan has received the green light from Australia’s Ministry of Industry and Innovation, which sees great potential in DIY’s position as a centre for Indonesia’s traditional leather industry. “The cattle trade relations between Australia and Indonesia are already very advanced. This is a strong foundation to move further into its downstream industry,” he said. According to him, this collaboration will also involve the private sector with the presence of a delegation of business actors and leather suppliers from Australia as well as representatives from the Indonesian Leather Tanning Association (APKI). Before meeting the Sultan, the Australian delegates had conducted field reviews to local industry centres, one of which was Ndalem Kulit Jogja. The visit resulted in plans to utilise wet blue leather raw materials from Australia, which will be processed into various value-added products, from handicrafts to cultural instruments such as leather puppets. The Head of the DIY Industry and Trade Office (Disperindag), Yuna Pancawati, explained that each layer of leather has different economic potential if handled with the right expertise. The absorption of high-quality international raw materials is believed to strengthen the competitiveness of local products on the international stage. “Each part of the leather has different utilisation potential, from the outer to the inner layers. This can be developed into a variety of high-value products,” she said. Yuna assessed that this collaboration will not only impact DIY’s economy but also serve as a catalyst for the growth of similar industries in Central Java and East Java regions. It will also open new job opportunities and create a sustainable leather industry ecosystem through strengthening the supply chain from raw materials to finished products.