Indonesia’s footwear industry is on the rise, showing significant potential to boost the national economy to a global level. According to Riefky Yuswandi, Secretary of the Directorate General of Small and Medium Industries, the sector grew by 3.92% in the second quarter of 2024 compared to the same period in 2023. This growth is a testament to the industry’s resilience and ability to adapt in the face of global economic challenges.
Highlighting Indonesia’s standing in the global market, Yuswandi referenced the 2023 World Footwear Yearbook, which ranked Indonesia among the top five footwear producers worldwide.
In 2023 alone, the country manufactured 807 million pairs of shoes, a clear indicator of its strong manufacturing capacity. Of this, approximately 445 million pairs, or about 55%, were exported, demonstrating the international demand for Indonesian-made footwear.
With exports reaching a value of US$3.7 billion from January to June 2024, Yuswandi expressed optimism that the year-end figure could surpass the US$6.4 billion achieved in 2023.
“We anticipate even greater growth in the second half of this year,” he said, emphasizing the importance of maintaining momentum to meet these ambitious targets.
However, Yuswandi pointed out that despite the promising export market, the domestic potential remains largely untapped. Only 362 million pairs were sold within the country in 2023, which is relatively low given Indonesia’s population of 282 million. On average, each Indonesian buys just one or two pairs annually, leaving substantial room for growth in the local market.
To address this gap, Yuswandi stressed the need for greater innovation in product design, marketing, and distribution to encourage domestic consumers to purchase locally made footwear. “We need to increase awareness of the quality of our products and make them more appealing to the local market,” he said.
Furthermore, the Ministry of Industry has introduced a machinery restructuring program aimed at supporting the local footwear and creative industries. This initiative offers entrepreneurs a 25% reimbursement on the cost of imported machinery and 40% for locally made machines.
The program is designed to improve production efficiency and foster innovation, enabling local businesses to compete more effectively both domestically and internationally.
Indonesia’s footwear industry has made significant strides on the global stage, there is still untapped potential within the domestic market. With continued innovation and support from the government, the industry is poised for even greater success in the coming years.
