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Footwear exports projected to grow up to 10 percent

Indonesian Footwear Producers Association (Aprisindo) has projected footwear exports to grow 5-10 percent from US$4.8 billion last year, on the back of the United States’ withdrawal from the Trans Pacific Partnership (TPP) on Jan. 23.

With the withdrawal, Vietnam, Indonesia’s rival for footwear and a TPP member, will be subject to tariffs from the US, Aprisindo chairman Eddy Widjanarko said.

“It means Vietnam will be subject to import taxes of 7-9 percent from the US, just like the taxes for our products,” he said over the phone on Wednesday.

The US is the number one importer of Indonesian footwear, followed by Belgium, Germany, China and Japan.

Eddy added that footwear exports from Indonesia had been on a positive trend in the past few years as most factories in Indonesia produced popular international brands and had benefited from the recent closures of shoe factories in China, which is focusing more on other products such as textiles and electronics.

Exports grew 6 percent to nearly US$4.8 billion, Aprisindo preliminary data shows.

However, Eddy warns, shoe sales in the domestic market worth Rp 25 trillion (US$1.8 billion) could potentially see no growth amid an influx of shoes from China. (bbn)

Source: The Jakarta Post