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The Growth of National Footwear Industry

27 February 2018 | Author : Manufakturindo
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In recent years, the National footwear industry is one of the many sectors that brought special attention from the government due to the growth achievement From the records of the Ministry of Industry, the national footwear industry managed to increase the export value up to USD4, 7 billion, or rise to two percent over the previous year.

 

General Director of IKM Gati Wibawaningsih explained that the positive performance of the national footwear industry mainly caused by the encouragement through the government's efforts to create a conducive business climate in the country.

 

Ministry of industry noted, the distribution of IKM footwear in Indonesia reached 32,562 units, and able to absorb labor as much as 113,907 people. In macro terms, in the five-year period (2012-2016), there has been a significant increase in Indonesian consumers' per capita consumption of footwear from only two pairs to more than three pairs per year.

 

Meanwhile, from the growth performance, the leather industry group, leather goods and footwear nationwide are above the average national economic growth. This sector is able to grow by 8.51 percent in 2016.

 

Based on World Footwear Market 2016, Asia still dominates 87 percent of world footwear production, and Indonesia is in the 4th position with total production reaching 1 billion pairs per year or about 4.4 percent of Indonesia's footwear production contribution to the world.

 

Gati added, IKM footwear is currently required to be able to create higher value added on the resulting product. One of the strategic efforts that needs to be done is to increase the development of industrial economic sector, by strengthening the quality of human resources (HR) and product quality.

 

There are several priority programs implemented, including the improvement of competency standards for the human resourcein the industry , the growth of new entrepreneurs and the promotion of national branding programs for IKM footwear.

 

One example that has been done is, the Equator shoe brand development program. The Ministry of Industry acts as the brand owner, marketing, and the rights holder of the shoe design intellectual work produced by the national IKM.



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