Indonesia's Shoe Production Now Accounts For About 30% Of The World's Total Output.

South Korea's Changshin group recently invested $60 million in a new shoe factory in gartlu, West Java, Indonesia. Indonesian Minister of industry Saleh Husin attended the inauguration ceremony of the shoe factory in person. It is reported that the shoe factory has an annual production capacity of 15 million pairs, which will provide more than 5500 jobs. The shoe factory products will be exported to Europe, the United States and other Asian countries. Saleh Husin highly values the importance of the shoe factory and believes that it will energetically promote the export of Indonesia's non oil and natural gas products.

Indonesian investment Daily recently reported that the footwear industry is a key industry in Indonesia. Shoemaking industry Not only can it increase the foreign exchange earnings of the Indonesian government, but also as a labor-intensive industry, the industry can provide sufficient employment opportunities for local residents. At present, Indonesia's footwear products are mainly exported to the United States, Belgium, Germany, the United Kingdom and Japan.

2011-2013 years, Indonesian footwear industry The average annual growth rate of investment is 4.7%. In 2013, Indonesia The total investment in shoe industry is 10 trillion and 700 billion rupiah and 836 million dollars. Saleh Husin said Indonesia's shoe production now accounts for about 30% of the world's total output, ranking the top six in the global footwear industry.

In 2014, Indonesia's footwear exports amounted to 4 billion 100 million rupiah, an increase of 6.4% over the same period last year, which failed to achieve the goal of the Indonesian government's export quota of 5 billion rupiah in 2014. Earlier this year, sixteen investors, mostly from South Korea and Japan, cancelled plans to build factories in Indonesia due to the uncertainty of Indonesia's minimum wage growth. In recent years, Indonesian workers' wages have increased rapidly, which has also caused serious burden on some foreign companies. Cheap labor is the main reason for foreign businessmen to invest and build factories in Indonesia. For this reason, dozens of shoe manufacturers have moved their factories to East Java or other ASEAN member countries, such as Kampuchea and Vietnam, where labor costs are lower.

Another factor affecting the development of Indonesia's footwear industry is the shortage of raw materials, leather and rubber. Despite being one of the world's leading producers of natural rubber, Indonesia lacks the processing equipment for processing natural rubber, which restricts the export of rubber.

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It is understood that since January 1, 2010, more than 90% of the 6 old member countries of ASEAN and China have achieved zero tariffs, and China's average tariff on ASEAN has decreased from 9.8% to 0.1%. ASEAN's 6 old member countries have also reduced the average tariff to 12.8% from China to 0.6%. By 2015, trade liberalization between China and ASEAN's 4 new members will reach the same level.

As an important power on the "one belt and one road", India is one of the largest cotton producers in the world and one of the largest exporters of cotton yarn in the world. The introduction of tariff relief policy will have a significant impact on the cotton industry in the country. According to the sources in India, during the visit of Prime Minister of India, Chinese leaders said they would promote the trade between China and India, and promised to reduce import tariffs on India cotton yarn. According to an industry source, the two advantages of tariff reduction and quota free import of cotton yarn will promote the breakthroughs of China's import of India and Pakistan, and will promote the rapid transformation of domestic cotton and textile enterprises. India has promised to cut import tariffs on cotton yarn in India. Below is the minimum tariff rate of cotton yarn imported from various countries and regions in China.