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With 2015 heralding the start of regional economic integration, Indonesian Footwear manufacturers voice their concerns about its impact on local industry.
Next year, a single market and production base will start to operate under the banner of the ASEAN Economic Market (AEC) with a primary objective to facilitate the free movement of goods, services, investment, and labour across the ASEAN member states of Brunei, Cambodia, Indonesia, Lao, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. The Ministry of Industry’s Director General, Euis Saedah, is quoted as saying that skilled workers will be in high demand as the national footwear industry will need to ensure a highly skilled workforce in order to take advantage of the opportunities afforded by the AEC, and to avoid losing ground to competitor countries.
As the Indonesian Footwear Industry Development Centre (BPIPI) launches initiatives to promote the AEC and stimulate growth in the footwear industry, the Indonesian Footwear Association (APRISINDO), has voiced concerns over what it sees as unfair competition caused by illegal imports. The association asserts that improving production quality is a key part of the process of attracting new footwear customers as well as stimulating preparation for the AEC within local industry.
The World Footwear Yearbook lists Indonesia in the top ten footwear producers in 2013 with over one hundred and seventy five million pairs of shoes, worth more than $35 Billion, exported.