Indonesian Footwear Exports Grow 64.5 Percent During A Decade Of Jokowi's Leadership

Footwear (Photo: Antara)

JAKARTA - The Indonesian Footwear Association (Aprisindo) noted that Indonesia's footwear exports increased by 64.5 percent during the decade of President Joko Widodo (Jokowi) leadership.

"During the 10 years of President Joko Widodo's leadership, Indonesian footwear exports increased rapidly to reach 64.5 percent," said Aprisindo General Chair Eddy Widjanarko in a written statement, Tuesday, October 15.

Eddy said that the rapid growth of footwear exports during President Jokowi's administration could not be separated from a number of his 'dare' policies.

For example, the determination of Government Regulation (PP) Number 78 of 2015 concerning Massive Wage and Development of Infrastructure, especially the Trans Java Toll Road, is an initial game changer that is able to curb the relocation of labor-intensive industries out of Indonesia.

Then, the signing of Government Regulation Number 78 of 2015 by President Jokowi, in which this regulation has at least succeeded in guaranteeing the size of the minimum wage increase because it has been stipulated in a calculation formula.

At the same time, the government has also stipulated the Job Creation Law, one of which is to regulate the law on employment. Regulation in the employment sector is able to provide a strong appeal for the footwear industry to invest in Indonesia.

"Although it should have been for a decade the growth of footwear exports could have doubled," he said.

Although the structure of the footwear industry is currently on the right track and is in growth, said Eddy, there are still a number of obstacles that are a challenge for the investment progress of the Indonesian footwear industry.

"Indonesia's export to the main market in the European Union is still burdened with uncompetitive import duties," he said.

On the other hand, competitive raw materials are still an obstacle in increasing Indonesian footwear exports.

However, he said, the support of import facilities for export purposes in the form of fiscal areas has been able to facilitate accessibility to imports of competitive raw materials for the industry.

Unfortunately, not all industries can access braided area facilities.

"So that domestic industries, especially those that are domestic investment companies (PMDN), find it difficult to compete for export and domestic markets," he said.

In addition, continued Eddy, the classic problem of business licensing bureaucratization will also still be an obstacle to incoming investment.

"For example, until now, getting environmental permits still takes a long time and it can even reach up to two years and at a very expensive cost," he added.