Young Entrepreneurs Encouraged to Drive Competitiveness of Footwear Industry

JAKARTA – To push competitiveness in the footwear industry, the Industry Ministry (Kemenperin) is encouraging local footwear producers to innovate their products according to current trends and market tastes.

One of the ministry’s strategies to do so is the Indonesia Footwear Creative Competition (IFCC). The IFCC aims to highlight the potential and creativity of young footwear producers and designers to help them find greater market opportunities and produce the best quality footwear that they can. 

The Kemenperin’s director general for small-to-mid scale and miscellaneous industries (IKMA) Gati Wibawaningsih said that Indonesia is currently the world’s 4^th largest footwear producer, behind China, India and Vietnam.

“We are also currently the 4^th largest consumer of footwear in the world, with a consumption rate of 886 million pairs,” she explained in a written statement issued on Thursday (25/3).

Data from the Kemenperin showed that Indonesia’s footwear industry managed to increase its export value by US$4.8 billion in 2020, compared to 2019. In January 2021, the export value reached US$490 million, rising by 15.54% compared to the same period last year. Indonesia’s main footwear export markets include the United States, China, Belgium, Japan, Canada, Germany and Italy.

Gati recommends that Indonesian footwear producers must try to improve their competitiveness with foreign products by collaborating with local designers and taking full advantage of the current technology.

“Technology and digitalization greatly benefits industries as it can drive creativity, innovation and adaptation,” she said.

In terms of creativity and innovation, Gati observed that Indonesia’s footwear industry is in need of greater creativity and innovation within several aspects, from its product designs to their marketing strategies. The implementation of Industry 4.0 technologies in their production processes would also greatly help their competitiveness in the global market.

The 2021 IFCC will run under the theme of “Indonesia Steps Forward”, with an emphasis on developing the footwear industry amidst rampant globalization and challenges stemming from the COVID-19 pandemic.

To help achieve this overarching goal, the Kemenperin is also encouraging footwear producers to partner with relevant institutions that can help bolster their creativity, with the current partnership between the ministry’s footwear industry development center (BPIPI) with ITS Surabaya an example of such an action.

“We are hopeful that the IFCC can become a platform for creative, innovative footwear designers across Indonesia so that they can help strengthen the country’s footwear industry and ensure the presence of Indonesian-made products in the global market,” Gati said.