Trade

Indonesian footwear exports expected to contract

Apr 20, 2023 Indonesia

According to the Indonesian Footwear Association (Aprisindo), the country's footwear exports may fall by about between 35% to 40% in 2023 to 4.64 billion euros, as compared to the previous year

In 2022, Indonesian footwear exports totalled 7.74 billion US dollars, increasing by 25.12% on a comparable basis to 2021 and by 8.96% as compared to 2020.

“We saw quite tremendous growth last year. [...] But buyers' orders started to drop in mid-2022”, commented Aprisindo's Executive Director Firman Bakri to the business newspaper Investor Daily, pointing out that orders from key markets such as the US and some European countries have declined sharply.

Data from the World Footwear 2022 Yearbook (more information available here) reiterates that the North American country is the main market for Indonesian footwear exports, but highlights that shipments to China have enjoyed the greatest increase over the last five years (by 142% to 656 million US dollars in 2021).

He added that this declining trend is expected to last until 2024, as the domestic market cannot absorb exported goods, given their different characteristics. “Our exports are premium products, whereas the domestic market is non-premium products, so they cater to different segments”, said Firman.

Source: jakartaglobe.id

Image Credits: Bisma Mahendra on Unsplash

Indonesia Exports Footwear International Trade