Footwear production moving out of Indonesia
The secretary-general of the Indonesian Footwear Manufacturers' Association, Mr Jimantuo, has warned that a significant number of footwear manufacturers are leaving the country due to high running costs. He claimed that at least 25 medium or large-sized shoe-making factories from Indonesia have recently moved to China, Vietnam, Thailand and Malaysia.
Mr Jimantuo said following entry to the WTO, the investment environment in China has improved, encouraging many entrepreneurs from abroad to build factories producing light industrial goods.
He has appealed to the Indonesian government to focus on the drain in production and take measures to prevent it happening. He believes the government should reduce the cost burden on domestic factories to allow them to compete in the global marketplace.
