A Large Number Of International Shoe Making Business Flows From China To Indonesia.

CollectiveBrands, executive director of the US Footwear Group, which owns Payless chain store, said that the group will open 15 franchise stores in Indonesia next year, and will shift the bulk production business from China to the largest economy in Southeast Asia.

Including Unilever (Unilever), Nestle (Nestl) and TOYOTA (Toyota).

CollectiveBrands has begun to purchase Indonesian manufacturers to reduce its dependence on rising cost of China.

MattRubel, chief executive of the company, said the company expects to steadily increase the supply of Indonesian subcontractors and reach 12 million pairs by 2015.

"China has always been a utopian of quality, cheap and one-stop shopping.

But utopia will never last, "Rubel said in an interview with the financial times.

"Today we must make more efforts to redeploy wherever possible."

China's output now accounts for about 80% of the total, which is predicted to fall to around 70% in the next two years and then drop to around 60%.

CollectiveBrands sold nearly 170 million pairs of shoes in 2009, earning $3 billion 300 million.

Nike, the world's largest footwear Brand Company (Nike), has shared production in China in 90s, Vietnam and Indonesia in the last century.

However, in the past three years, China's share has also declined slightly. Now Vietnam accounts for 37% of its sales, China accounts for 34%, while Indonesia accounts for 21%.

NewBalance and Adidas (Adidas) also buy millions of pairs of shoes from Indonesia every year.

A move like CollectiveBrands can help Indonesia surpass Vietnam this year and become second only to China.

CollectiveBrands operates 4500 Payless chain stores in the United States and reached a franchise agreement with PTMitraAdiperkasa in October this year.

The first batch of Indonesian stores will open in the second quarter of 2011 in Denpasar, Jakarta and Bali Island, the company secretary FettyKwartati said.

The company also plans to open stores in Malaysia and Singapore.

Indonesia's manufacturing industry was almost completely destroyed in the Asian financial crisis of 1997-98 years, and now it has regenerated its vitality.

The country's economic growth rate reached 6%.

Shoe production has returned to pre crisis levels.

GitaWirjawan, chairman of the Indonesian investment Coordination Committee, said Indonesia expects to produce 300 million pairs of shoes worth 2 billion to 2 billion 500 million dollars in 2010.