PT. Visi Globalindo Data Utama predicts that the national footwear industry will only grow by 4.19% in QII/2018, or decreasing from 4.94% in QI/2018 and 8.69% in the same period of 2017. It is because the demand for imported products is higher than for the local products. This depressing situation has occurred for the past 2 years.
Yet, the decrease is not an indication that the sector is low potential. Unlike the demand from the domestic market, the demand from the international market is actually much bigger. For this year 2018, as targeted by the government, the export value of leather, leather goods, footwear and clothes from Indonesia will increase by 10% to USD 5.89 billion, compared the 2017’s export realization that only reached USD 5.36 billion.
In the present time, there are some 32,562 small-medium players in the Indonesian footwear industry, with total absorption of 113,907 workers. Compared to the previous five-year period (2012 – 2016), consumption per capita toward footwear products in Indonesia has doubled, from only 1.8 pairs to become 3.3 pair per year.
To meet the 2018’s target, the industrial players are required to increase their competitiveness, either through the improvement of product quality or product standard as required by the buyers, with support of efficient production management system.
Based on these facts, it can be said that the potential market for Indonesian footwear products is far higher in the international market than in the domestic market.