Indonesia lifts Chinese leather ban until January 2004
According to the China Light Industry Import and Export Commerce Chamber, the Indonesian Ministry of Agriculture has temporarily lifted its ban on finished leather from
The government was forced into the partial climbdown by the serious shortage of leather experienced in the country, particularly in
The news follows reports from the Indonesian Footwear Association (Aprisindo) that many of the country’s footwear producers have closed down their factories and relocated to other Asian countries such as
Speaking to the Indonesian press, the chairman criticised the government and said that it does not provide a supportive business environment. He cited the example of the government encouraging companies to boost exports without improving the infrastructure or efficiency. Harijanto stressed the importance of assisting small and medium sized companies (SMEs), such as the footwear supporting industries, which were the most vulnerable and likely to relocate outside the country. He added that Aprisindo currently has just 120 members, compared with 170 it had before the monetary crisis in 1997.
Despite these problems,
Local economist, Djisman S Simandjuntak, has even predicted that
