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APSyFI: The national textile industry is headed for a trade deficit, 2018 exports grow 1% and imports grow 14% (yoy).--IKATSI: The growth of the national textile industry is still hampered by floods of imports, Indonesia needs a clothing security law.


	
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Exports of Footwear are Targeted to Double PDF Print E-mail
Written by Maizer   
Friday, 05 April 2019

Budiarto Tjandra, Chair of Sport Shoes & Foreign Relations Development of the Indonesian Footwear Association (Aprisindo), said that if seen in the past few years, footwear exports grew rapidly over a period of 8 years. In 2002, the export value of shoes reached US $ 1.15 billion and grew 118% in 2010 to US $ 2.50 billion.

 

Furthermore, 8 years later or in the past year, export value rose 104% to US $ 5.11 billion. Realization in 2018 became the first time that footwear exports penetrated US $ 5 billion.

 

"Historically, every 8 years grows double. However, in the future we are targeting in five years to be double, there will be acceleration, "he said at the Press Conference of the Indo Leather & Footwear Expo in Jakarta.

 

Meanwhile, the doubled export growth target can be achieved through existing opportunities. Budi, his nickname, said that the EU market is an opportunity to increase exports because of the large population.

 

Therefore, the government is expected to be able to immediately complete a free trade agreement with the European Union so that Indonesian footwear products can enter with low import duties.

 

Present, Indonesian footwear products are subject to 11% import duty by the European Union government. Meanwhile, neighboring Vietnam has trade agreements with the European Union so that the country's export growth grows by double digits every year.

 

"A trade war between the United States and China must also be taken to attract factory investment from China to relocate to China. For this, an attractive package is needed in the form of a tax holiday, "he said.

 

In addition, the government is also expected to provide support to existing industries in the country, including providing tax incentives, freeing sectoral wages, and developing footwear raw material industries.

 

Meanwhile, Vietnam is currently Indonesia's main competitor in the Southeast Asia region. The country's export growth is higher with average growth from 1999 to 2018 amounting to 15.96% while Indonesia is 8.47%.

 

 

 
		
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