Footwear producers urged to improve branding

15 May 2015

Indonesian leather product producers were recently advised to build on the branding of their products in order to expand access to domestic and foreign markets.

 

Indonesian Industry Minister Saleh Husin said that Indonesian leather and footwear products are of a high enough standard when evaluated by markets in foreign countries. However, due to the low profile of Indonesia's brand names, products were rebranded, he continued.

 

Husin added that the government, through his ministry, is eager to assist national business in leather and footwear to address the branding dilemma in order to improve added value on their products.

 

"The aim of [the] branding programme is to make domestic products have the capability to compete in [the] global market," he said.

 

In addition, the Industry Ministry would support national industry associations in establishing business cooperation with footwear associations from foreign countries.

 

The Indonesian leather and footwear industry contributes 27% to the nation's non-oil and gas exports that supported nearly 18% of the nation's GDP in 2014.

 

According to data released by the ministry, total investment of the national leather and footwear industry was 11 trillion rupiah (about $858.8 million) from 394 firms that employed 643,000 people as of last year.

 

Indonesia's footwear export stood at just above $4.00 billion in 2014, or about 6.5% higher than $3.86 billion recorded in 2013.



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