Raw materials warning for Indonesian government
10/05/2010
He told local media: “We hope domestic manufacturers can meet increasing demands for footwear and leathergoods both domestically and in overseas markets. Local footwear manufacturers have capacity to meet less than 50% of total domestic demand at the moment, he explained. At the same time, he said that he expected the value of footwear exports to increase to $3 billion in 2014 from $1.7 billion in 2009.
The chairman of the Indonesian Tanners’ Association (APKI), Senjaya Herlina, has responded by saying the local footwear industry faced difficulties from a lack of raw materials.
He said the 15%–25% export tax imposed by the government was proving ineffective in discouraging the export of Indonesian raw material, leaving local finished product manufacturers short.
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