Fuel, power price hikes hit shoe exporters

Global branded footwear makers might think twice before relocating their plants from China to Indonesia due to the government’s recent decision to increase fuel and electricity prices.

The Indonesian Footwear Association (Aprisindo) said on Thursday that since the United States and Europe issued an anti-dumping policy against Chinese products recently, global shoe companies have been considering relocating their Chinese plants and Indonesia was one of their options besides Vietnam.

“We have made contacts with the companies and they are still calculating the risks of investing here,” Aprisindo chairman Harijanto told the press on Thursday.

The association, he said, projected that if the footwear makers chose Indonesia as an alternative site for their factories, the domestic shoe industry could increase its export market value by 20 percent, or between US$1 million and $2 million.

The Jakarta Post