Indonesian shoe makers hit by Chinese leather import ban

06/11/2003

The Indonesian Footwear Association (Aprisindo) has expressed concern that footwear manufacturers in Greater Jakarta and East Java may be forced to suspend operations due to a government ban on leather imports from China.

 

The ban was imposed by the Indonesian Ministry of Agriculture on October 5 due to concerns over Foot and Mouth Disease, as China has not issued a country report on the disease for several years.

 

Aprisindo says the ban could affect around 13 manufacturers who rely on Chinese imports for around 60% of their leather.

 

The ministry temporarily lifted the ruling in mid-October, but only one shipment per importer was allowed for the next three months.

 

According to Aprisindo’s secretary-general, Yudhi Komarudin, many imported leather materials are currently being held in the Customs and Excise offices.

 

The Indonesian footwear industry employs around 24,000 workers. In 2002, the country’s footwear exports totalled $1.2 billion compared with $1.6 billion in 2001 and $2 billion in 2000. Around 40% of imports are to the US and 33% to Europe.