Business
UPDATED: 14:32, March 06, 2006
Footwear giants return to Indonesia http://english.peopledaily.com.cn/200603/06/eng20060306_248270.html
World's leading footwear industries reportedly increase order from Indonesia due to a planned additional quota imposed by the European Union (EU) on Chinese and Vietnamese footwear products, a newspaper said Monday.
Top footwear brands like Nike, Reebok and Adidas have increased their orders from Indonesia due to the quota, said The Jakarta Post, quoting an executive familiar with the business.
Indonesian Footwear Producers Association (Aprisindo) chairman Harjanto has said Adidas had opened two new factories here under the names PT Poong Won Indonesia and PT Spotec, while global brand Puma will start producing in the country again.
This development indicated that this year the industry could perform even better than last year, Harjanto added.
Last year, Indonesia's exports of footwear increased to 1.5 billion U.S. dollars from 1.32 billion reported in 2004.
Meanwhile, domestic sales reached 4.5 trillion rupiah (489.9 million dollars) in 2005 as compared to 4 trillion rupiah (435.5 million dollars) booked in the previous year.
Harjanto said the Trade Ministry had helped the industry regain its market through its negotiations with related South Korean and European businesspeople late last year.
However, the government still needed to address labor regulations and financing problems, as well as difficult import procedures for leather, he said.
Source: Xinhua
Copyright by People's Daily Online, all rights reserved