Thursday, June 16, 2011

U.S. Suppliers Shine So Glancing Indonesia ?

by: Erlangga Djumena JAKARTA, KOMPAS.com - local shoe Products Indonesia are ogled by the Americans as a substitute for shoe imports from China that had dominated the land of Uncle Sam's. America itself began to saturate the market with products priced shoes from China climbing.

Deputy Trade Minister, Mahendra Siregar said the U.S. is currently looking for an alternative capable of supplying shoes country other than China. The move was taken because of its dependence on Chinese products that are too large are not well assessed. "One of the alternative country is Indonesia," Mahendra said on Thursday (16/06/2011).
According to Mahendra in the near future shoes and garment business associations will be visiting America to explore cooperation with shoe manufacturers from Indonesia. Indonesia shoe industry says should be able to take advantage of this to widen the market in America.
During this time the American shoe market is filled almost 100 percent of imported products. Of that amount about 80 percent came from China and the rest come from the 12 other countries including Indonesia.
Chairman of the Association Persepatuan Indonesia (Indonesian Footwear Association), Eddy Widjanarko said Chinese footwear products more expensive due to rising production costs there primarily to labor costs. It became one of the causes of market saturation against Chinese products. But the opportunity was not necessarily used by the footwear products from Indonesia.Indonesia's ability to fill the shoes market in the U.S. thinks the issue will be hampered production capacity of the footwear industry that is already full. "Need to invest first to add production capacity," said Eddy.
Currently Indonesian footwear exports more focus to Europe as it is easier than to America. Exports to the U.S. he is often hampered standards and requirements are complicated.
Eddy said that in 2011, the national target of footwear exports reached 3.2 billion U.S. dollars. Of that amount, exports to Europe alone around 42 percent and about 32 percent of Americans-35 percent. Exports to America only to brands of large companies like Nike and Reebok(Sofyan Nur Hidayat / Cash)

source:kompas.com
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