Indonesia Has The Opportunity To Become A Center For Exporting The World's TPT And Footwear Industry, Here's The Explanation

Illustration. (Photo: Doc. Antara)

JAKARTA - Despite being faced with serious challenges and threats of recession, the Indonesian economy was able to grow positively by 5.31 percent year on year (yoy) in 2022.

One sector that is a catalyst in encouraging national economic performance is the textile and product textile (TPT) industrial sector and footwear.

Deputy for Commerce and Industry Coordination, Ali Murtopo Simbolon said, Indonesia itself has the potential to become the main market, production base, and export center of the world's TPT and footwear industry with many advantages.

He said, in 2022, TPT's trade balance performance experienced a surplus of US$3.71 billion, an increase of 3.34 percent compared to the previous period. Similar to footwear, which experienced a surplus of 1.03 billion US dollars, an increase of 41 percent compared to the previous period.

"The United States and Europe are still the main destination countries for the export of these two industries," he said in his official statement, quoted Thursday, March 23.

Indonesia is the country with the 16th largest economic level in the world, with a very small chance of recession, at 3 percent in 2023, having a very large domestic market with a population of 273 million, a significant increase in demographic bonuses, as well as relatively stable political and economic conditions.

He also said that Adidas Indonesia, which is one of the largest contributors to exports of the TPT and footwear industry and has realized exports in 2022 worth US$2.54 billion and even exports to European countries reached US$826.6 million or equivalent to 33 percent of its total exports.

"High competitiveness is the key to achieving optimal export performance. However, importing raw materials is an inseparable part. The challenge of supply chain integration is very important to be resolved immediately," he said.

According to Ali, the implementation of Adidas Global Partner Summit is the right momentum in realizing the more competitive upstream integration of the TPT industry and Indonesian footwear.

"For this reason, I invite all the top executives and partners of Adidas Group who are present so as not to hesitate and immediately invest in filling the vacancies of the Adidas Indonesia supply chain, so that Indonesia is able to move as the main market, production base, and export center of the TPT industry and world footwear," he concluded.

For your information, Coordinating Minister for Economic Affairs Airlangga Hartarto, represented by Deputy for Commerce and Industry Coordination Ali Murtopo Simbolon, recently attended the Adidas Global Partner Summit activity, some time ago.

This activity is the peak event for executive meetings with partnering companies Adidas, as well as potential investors who will invest in Indonesia. The event was also attended by Adidas CEO Bjorn Gulden and COO Adidas Martinpland.