Financial meltdown may harm Indonesian shoe exports
According to the Indonesian Footwear Industry Association, problems in the US financial markets could have a devastating impact on the country’s shoe export sector.
Because Indonesia relies so heavily on the US as a major shoe export destination, the industry may struggle to meet targets should events take a turn for the worse. Reports indicate that shoe exports accounted 52% of total industrial exports in the first six months of the year, so problems within the footwear sector are likely to have a significant impact on its economy as a whole.
While it is anticipated that exports will grow 12% this year, there are fears that 2009 will present new and greater struggle. Part of the plan to counter this is to concentrate on new potential export destinations, such as China, India, South Korea and Taiwan.
