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Ministry of Trade of The Republic of Indonesia
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Handbook of Commodity Profile “ Indonesian Footwear : Step to The World �
is developed as part of national efforts to create mutual beneficial economic cooperation and partnership betwen Indonesia and wold comunities. Published in 2009 by :
Trade Research and Development Agency Ministry of Trade, Republic of Indonesia
Cetakan Pertama
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Introduction The footwear industry is an important industry for Indonesia. It is one of the largest contributors of jobs and revenues for the country. It employs millions both directly and indirectly. The industry in recent years is showing a sign of robust growth after a period of intense global competition. It is only fitting that the Ministry of Trade through its Research and Development Agency shall make a promotional booklet on this industry. 4
The Indonesian footwear industry is an industry which relies on creativity and ingenuity INDONESIAN
to survive. It also, by no accident, one of the most creative in the world, as the reader shall see in this booklet. Our team of researchers and surveyors have travelled to the centers of Indonesian footwear industry, all in a spirit to provide the reader with a mesmerizing
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picture of the world of Indonesia-made footwear. I hope that this booklet will entice its readers to find out more about Indonesian footwear industry and its endless potentials.
Muchtar Head Trade Research and Development Agency (TREDA)
Minister of Trade Republic of Indonesia
Message It is our great pleasure to share with you one special type of numerous product lines belonging to Indonesian creative industries, in this particular case, footwear. Throughout the ages, the creativity of Indonesian people has given birth to numerous products and also industries that are both strong during economic expansion and resilient in times of downturn. 5
countries and efficient manufacturers. Yet, Indonesian firms have a long experience in producing high-quality products. In this era of globalization, Indonesian footwear makers
manufacturing system that are more efficient.
As part of our national efforts at improving Indonesian share in the world market, this booklet present background information on Indonesian footwear for the readers to appreciate. Enriched with vivid illustrations, this book is dedicated to those who are interested in exploring the richness and economic potentials of footwear industry and fashion.
Mari Elka Pangestu
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are pushing the limits further to develop footwear with better designs and footwear
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The footwear industry, in particular, is intensely competitive. There are many producing
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One Step at a Time
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Global Trade in Footwear
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The foot is the most important limb. Good footwear improves mobility, enhances health, and improves life’s quality
of a human being. It supports the entire human’s weight, and what makes mobility possible, and therefore define the human “animal”. The foot itself is the product of millions of years of evolution. It has the most bones than any other limbs. It has 26 bones, 37 joints, 107 ligaments and 19 muscles and tendons. It is also the part of the human body with the most direct contact with the environment. It is therefore only natural that humans take extraordinary measures to protect their feet. Good feet protection improves mobility, enhances health by reducing risks to injury, and ultimately improves life quality by making life more comfortable for the human being. Recently, what began as simple feet protection articles have evolved to serve as body adornments and status symbols in human societies. Enter the world of footwear. Footwear serves many uses and purposes. It is an indispensable piece of wearable article. It protects its wearer from the environment. In industrial settings safety footwear are a must in order to protect workers from falling objects, chemical spills and other hazards. In sports footwear are further designed and engineered to improve the performance of athletes. Sport shoes make athletes run faster, jump higher and kick harder, all with yet less fatigue and lower risk of injury. In the military, footwear is designed to be durable, light and protect soldiers from environmental factors, including waterproof and pathogen-proof boots. There is footwear for every climate and field conditions.
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The foot is arguably the most important limb
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Some people have suggested that you can tell a man/woman by his/her shoes. Although the result you will likely get from applying it may not be entirely accurate, this view certainly suggests that shoes and footwear have entered the realm of style and cultural significance. Shoes at most can tell about a person’s attitude, his/her likes and dislikes, his/her occupation, where they have been, and to some degree, how important material things are to him/her (as shown by the amount of money that person is willing to spend on a pair of shoes). While it is obvious that foot-
Footwear plays an important role in a person’s wardrobe. You can tell a man/woman by his/her shoes.
wear plays an important role in a person’s wardrobe, it also plays an important role in the economies of many developing countries. Cheap labor and materials have made some de-
veloping countries into footwear manufacturers’ paradise. The labor intensive nature of footwear 10
production makes cheap labor attractive. There is also a growing appetite for an ever expanding range of footwear for all uses and purposes. As a result, large footwear industry began to develop tremendously in developing countries. Indonesia is no exception.
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The footwear industry in Indonesia has developed much in the last few decades. From small boutique shops to large factories making footwear for many of the world’s leading brands. The Indonesian footwear industry today boasts a massive catalogue of footwear products of all types, uses, designs and styles. The Indonesian footwear industry today produces about 131 million
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pairs of footwear a year worth approximately 2.5 billion US dollars, while employing more than 440 thousand workers (2008 data), and millions of other workers in related industries. Indonesian footwear is also exported. Indonesia’s primary footwear export markets are United States, Europe and Japan. The Indonesian footwear industry has had its ups and downs, however. Mass footwear manufacturing in the country began in the 1970’s. Since then, the industry has continued to grow. Indonesia was once one of the world’s premier exporters of shoes and footwear during the 1990s. In the 1990s Indonesia was the third largest footwear exporter to the world. Benefiting from cheap labor, supportive government policies and a dose of local ingenuity, Indonesian footwear makers were making a name for themselves in the international market. This position was challenged in the early 2000s as other producers enter the market. Indonesian products had to compete with new producers and brands from other emerging economies. Since the mid 2000s however, the Indonesian footwear industry has begun a steady recovery. This is in no small part thanks to the determination of the local footwear manufacturers and their ingenuity and creativity in the face of adversity.
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One Step at a Time:
The History of Footwear Historically, footwear throughout the world varied according to climate, environment, terrain and available raw materials.
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Footwear is defined as any garment or piece of clothing worn over the feet for protection and/ or adornment. One can easily conclude footwear has been around for at least almost as long as
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humans walked the earth. The oldest known (i.e. found) footwear is dated at 10,000 BC, while experts estimated that humans started wearing some form of footwear beginning in 40,000 to 26,000 BC. Historically, footwear throughout the world varied according to climate, environment, terrain and available raw materials. They have also varied throughout history influenced by technological advances, the fashion of the time and and developments in local culture, which in turn
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is also influenced by other cultures. Footwear can make or break your day, or in the case of the Romans, create an empire. The Roman army was the first to provide footwear to its soldiers. They were the first to realize that good footwear is an essential piece of a soldier’s equipment. The result of providing durable footwear suitable for long distance marches and combat was that the Roman army is much more battle-ready and resilient than any other army that opposed them. This fact (along with other innovations in tactics and organization) enabled the Romans to carve out a massive Empire which lasted for 900 years, all mostly on the soles of the Roman boots. In the 20th Century, the introduction of and advances in mass production techniques, the processing of rubber, synthetic materials and the introduction of industrial adhesives further improved upon the footwear industry, making footwear cheaper and more durable. It was only in the 20th Century that shoe (as opposed to simple footwear) wearing became predominant as a good pair of shoe becomes affordable. New types of shoes were born, particularly the sneakers and sports/athletic shoes. Technological advances found their way into modern-day footwear. Advances in science made possible for the first time ergonomically designed shoes that not sim-
ply fit the wearer but also made them more comfortable and, in some, enhances their physical
The 20th Century also saw the first instances of outsourcing. With labor becoming increasingly expensive in the developed world, major footwear manufacturers from the developed world began to set up factories or contract their footwear production to firms outside their home country.
One can trace Indonesian industry to the early 20th Century. In the 1920s, a number of local workers of a Dutch shoe factory left their jobs to start their own shoe-making businesses. They became the embryo of Cibaduyut shoe industry cluster, with now has grown to around 800 businesses and annual production of 4 million pairs. This area becomes well-known nation-wide for their quality and their competitive pricing. Another landmark in modern footwear manufacturing in Indonesia was in the 1940s when Bata, a Czech company, set up its factory in what is now known as the Kalibata (literally, “Bata stream” as the locals came to name the neighborhood) area of Jakarta. Mass footwear manufacturing boom in the country began in the 1970’s. Since then the industry has continued to grow. Not only they produces local brands or custom-made footwear (the way most businesses in Cibaduyut or Mojokerto do), but also global brands. Companies like Nike, Adidas, Bata, etc. have large manufacturing partners in Indonesia. Indonesia was one of the world’s premier exporters of shoes and footwear during the 1990s when it was the third largest footwear exporter to the world.
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Indonesia is one of the countries that gain benefit from this outsourcing boom.
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performances as in the case of athletic shoes.
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Sandals, Boots,
and Other Footwear The footwear industry today has developed much and is a far cry from what it was just 10 years ago. New materials, production methods and styling are constantly being added to the ever-expanding product catalog. Today’s footwear market offers a wide variety of footwear to suit every need and occasion. Basically today’s footwear can be categorized based on their function and intended use, and also their general shape. Indonesia produces almost every type of shoes, but is particularly strong in the sports and leather segments.
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There are so many foreign and local brands that are produced in Indonesia. The catalog includes sport shoes giants (Nike, Reebok, and Adidas), designer brands (Benetton, Tommy Hilfiger and Pierre Cardin), and many others. Below is an inexhaustive list of those brands. As mentioned earlier, Bata may have been the oldest major manufacturer still in operation. The products are mostly leather formal shoes for men and women, but it also has business units producing casual and sports shoes, injection moulded sandals and slippers, and industrial safety footwear. Bata, Marie Claire, Power, Bubblegummers, and Weinbrenner are brands owned by the company. The manufacturing of Nike shoes maybe the most high profile of all in recent times. About 55 million Nike sport shoes are produced in Indonesia, an estimated USD 1.3 billion in value and considered its largest production base. Production cost is often cited as the main reason multinationals move their production out of industrialized nations. Nevertheless, this doesn’t change the fact that Indonesia has the infrastructure and manufacturing capability to mass produce highand their consumers. Less well known by the general public is Indonesia’s accomplishment in other categories. There are few examples to briefly illustrate this. Unicorn, for example, has been producing safety donesia is also entrusted of supplying a large quantity of NATO-standard military boots. In the category of HS 950670 (which includes ice skates and roller skates), in 2008 Indonesia was the 13th largest supplier to Europe (with over USD 6 million) and rank 3rd for NAFTA countries (with more than USD 12.5 million)—both are stunning growth considering the value was not significant in 2005, as reported by Trade Map website.
Adidas
Cerini
Fly
Michelin
Ananda Singgih
GAP
Mod 8
Chatham
Andre Valentino
Converse
New Era
Nike
Sledgers
Hush Puppies
Oakley
Specs
Deichmann
Kappa
Osh Kosh
Starmon
Bata
Diadora
Sunly
Beltoni
Dockers
Kickers
Pakalolo
Piero
Tomkins
Benetton
Eagle
Pierre Cardin
Tommy
Hilfiger
Bertinni
Ecco
Lacoste
Reebok
Bubblegummers
Ellesse
Rockport
Unicorn
Logo
Marie Claire
Fila
Salamander
Yongki Komaladi
Carvil
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footwear since 1976 and boasts dozens of local and multinational corporations as clients. In-
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quality shoes. It is no mean feat, considering the rigorous standards demanded by the brands
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Materials and Processes 16
Most of footwear production today has undergone industrialization and are typically organized into four distinct steps: cutting, closing, lasting and finishing.
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In modern footwear industry today, many different kinds of materials are used for footwear making. In addition to the traditional wooden and rubber for soles, leather for uppers and steel for everything that needs hard reinforcements, modern materials spawned out of industrial research labs have entered the world of footwear making. These include materials that are waterproof, fast-drying, breathable (allows moisture to escape from the footwear, and thus improving comfort
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and hygiene), germ-proof, etc. There are also innovative sole materials and design which provide and improve the wearer’s comfort and protection. Plastics, polymers, and new threads and materials have all been used in footwear making. Some of today’s footwear are made from layers and some are equipped with special linings for added protection or properties. Most of footwear production today has undergone industrialization and are typically organized into four distinct steps. These are cutting, closing, lasting and finishing. Cutting involves cutting the fabric and base materials of the footwear into the desired shape. Closing is the process of sewing the cut uppers and forming a three dimensional shape of the footwear. Lasting is the process of forming the upper around a “footwear mold” or a last. The last is needed to give the footwear a uniform fit and shape and to keep the right and left side of the pair in equal measure. Finally the footwear product undergoes finishing processes for applying the final touches such as trimming excess materials, attaching laces if needed, labeling and packaging. The machineries used for footwear-making have made progresses. From simple traditional footwear-making tools of the early days into today’s advanced computerized industrial machines with laser-guided precision. Despite of the advances in industrial machinery, much of the work
that goes into footwear-making however still requires the nimble and flexibility of human hands. In fact, the degree of complexity that goes into footwear-making makes total automatization practically impossible. Machines exist mostly to aid its human operators in performing . These chores include sewing, which is still done mostly by hand aided by simple sewing machines. Sewing by hand is typically done especially for complex patterns which would be done cheaper by hand
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rather than using expensive machines. Lasting final checks and quality assurance are also done
The most common material used for footwear manufacturing is leather and Indonesia possesses good quality leather. Javanese cow-hide leather is one of the highest quality leather types compared to other types of leather in the world. It is also found to generally have very little defect and thus not much is wasted in the process of footwear making. The unique property of the Javanese cow-hide leather is due to the unique climate and cattle-feed used. All these factors support the Indonesian footwear industry in its bid to face competition in the international marketplace.
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in the world. Javanese cow-hide leather is typically more flexible and less susceptible to tearing
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by humans for obvious reasons.
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The Indonesian footwear industry has a long history. The footwear industry in Indonesia has grown in many locations around the country. From small-shop footwear makers to large internationally connected manufacturers, one can find footwear makers of all sizes and specialties in Indonesia.
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Indonesian Footwear Industry The Indonesian footwear industry has a long history. Most of the oldest local footwear manufacturers still in business today however, were founded in the late 1960s to early 1970s. Foreign footwear manufacturer investment began as early as 1940 when Bata, a Czech company set up its factory in what is now known as the Kalibata (literally, Bata stream as the locals came to name the neighborhood) area of Jakarta. In 1988, the Indonesian footwear industry was strengthened by the founding of Aprisindo (Asosiasi Persepatuan Indonesia, Indonesian Footwear Association), which acts as the industry’s voice and facilitator and also its lobbyist. The footwear industry in Indonesia began to boom in the early 1990s to 2000. Since the early 2000s however, new competitors appeared from the emerging economies of China, Vietnam, and others. They flooded the market with cheaper goods and and was able to gain much market share. This trend has changed in recent years, however. Today, Indonesian footwear makers are slowly regaining their foothold in both global and local markets. Chinese goods are slowly becoming more expensive as their industrial capacity and value chain expand-
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have further tarnished their reputation to the global footwear industry. Today, once again Indone-
Indonesia holds a number of advantages as we will see in the following chapters. These qualities are namely the well-established culture of creative footwear-making among Indonesian footwear makers, an industrious footwear-making industry accustomed to handling foreign buyers’ exacting demands, supportive government policies and a well-established domestic footwear market. The footwear industry in Indonesia has grown in many locations around the country. From small-shop footwear makers to large internationally connected manufacturers, one can find footwear makers of all sizes and specialties in Indonesia. The footwear industry in Indonesia today consists of more than 250 registered industries. These are however concentrated in the island of Java, and include such major cities and urban centers, e.g. Jakarta, Bekasi, Tangerang, Yogyakarta, Surabaya, Sidoarjo, Bandung and Garut. Small manufacturers typically cater to domestic markets. Medium to large-sized manufacturers typically have some of their manufacturing capacities used for catering to foreign orders. While manufacturing for the foreign market remains strong, most large internationally-exposed manufacturers however, also produce for the local market. This will help them to cushion any hard impacts from the fluctuations of foreign demands.
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sian footwear makers are being inundated by foreign orders.
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ed. Allegations of dumping tactics, poor labor practices and inadequate control of toxic materials
The Indonesian footwear industry can be proudly claimed as one of the best in the world. It is also an export-oriented industry. Indonesia exports 20 times as many footwear as it imports. In addition to makers of sports footwear and sneakers, some of the world’s most exclusive, luxurious (and expensive) brands outsource their products’ manufacturing to Indonesia. Some specialized Indonesian footwear manufacturers are used to taking orders from the exacting demands of foreign buyers. They may even propose new designs to the buyers, in addition to taking design directions from them. Some manufacturers even manufacture high-end footwear products for exclusive events all over the world, in addition to exclusive European high-end brands. A number of Indonesian manufacturers also manufacture NATO-standard military boots. In addition, as mentioned in earlier chapter, Indonesia also possesses good quality leather, the most common material used for footwear manufacturing. Indonesian footwear industry today produces a broad and ever-increasing range of products. All kinds of types of footwear for both the domestic and foreign markets can be found manufactured in a number of industrial centers around the country. Some of them are as follows:
Jakarta, Tangerang, Bekasi and the Surrounding Areas 20
As the nation’s capital and its most populous city, Jakarta and its surrounding cities, totaling some 20 million in population is home to large industrial complexes. Its location near the nation’s largest seaport also facilitates export. Jakarta is also a site for many exhibitions and trade shows,
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including those that are important for footwear and footwear-related industry.
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Bandung and West Java area
Yogyakarta and Central Java
Surabaya, Sidoarjo and East Java Area
Tangerang and Bekasi host some of the largest industrial complexes in the country and contain some of the largest industrial-scale footwear manufacturers in the country. Through the many government agencies and industry associations and representatives, Jakarta and its surrounding area is the ideal place when one seeks to experience the breadth of the Indonesian footwear business.
In addition to large industrial estates, Jakarta also hosts a small-business footwear industry complex in the Perkampungan Industri Kecil (PIK). This center, located in the Penggilingan, Cakung area of East Jakarta. This complex houses large number of local small-scale businesses, including a great number of footwear businesses. Most of their footwear products are made by hand and are rather innovative and affordable. This complex was built by the government to facilitate small industries’ development in the Jakarta area.
Bandung and West Java Area Bandung is one of Indonesia’s major cities and also one of its industrial centers. In addition to a number of industrial manufacturers, Bandung is home to the country’s oldest and best-known footwear making community in its Cibaduyut area. Cibaduyut is a 14 square km area located south of Bandung city center. The local footwear-making industry started in the 1920s when a number of local workers of a Dutch (Indonesia was then under Dutch administration/colonization) shoe factory left their jobs and started their own footwear making business. The small momand-pop footwear shops grew and soon many other locals started along the same business. The area’s footwear making industry continued to grow and became a sizable community by the 1950s. The area gained national-renown in the late 1970s and early 1980s. Since then it has become one of the most well-known local destination for quality footwear at low prices. Cibaduyut
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footwear makers however, not only manufacture low-priced footwear. Some of them also work as suppliers to large footwear manufacturers both from domestic and abroad. Today the Cibaduyut area boasts more than 800 footwear making businesses with capacity to produce more than 4 million pairs annually. In addition to the traditional footwear making community at Cibaduyut, Bandung and its surrounding area also contain industrial complexes and are home to a large number of footwear
manufacturers. One can find a great many variety of footwear manufacturers. They cater to the foreign as well as domestic markets. Their existence help Bandung to be the trendsetter of the fashion industry where millions of consumers and commercial buyers flock to the “Factory 22
Outlets” and “Distros” located around the city. Also located in the West Java Province, the cities of Garut, Bogor and Sukabumi are also
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large footwear making sites. Garut is well known for its leather tanning and leather goods industry. There are more than 300 leather tanning shops of all sizes in Garut. This makes Garut a natural footwear-maker home. It also supplies footwear makers around Jakarta and West Java Province with leather. Bogor is a city located in a hilly region some 60 kilometers South of Jakarta in the West Java Province. This temperate, rainy city is home to a footwear industry with a 16.5
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million annual capacity. In Sukabumi, one can find some of the largest footwear maker factories making products for a number of overseas footwear brands. The capacity of footwear industry in Sukabumi is around 30 million pairs annually.
Surabaya, Sidoarjo and East Java Area East Java Province produce some 300 million pairs of footwear annually. Located in the Eastern part of Java, Surabaya and Sidoarjo are two of the nation’s major footwear industrial sites. In addition, these two cities contain a number of government industry-development and supporting agencies. Surabaya is the capital of the East Java Province and is the country’s second largest city with about 3 million inhabitants. The footwear industry in Surabaya is well developed.
Many of Indonesia’s large sports footwear manufacturers, especially sports footwear, are located in Surabaya. In Surabaya, one can find some of the finest examples of Indonesian footwearmaking. It is home to some of the companies supplying the world’s most exclusive and expensive brands. These include (among others) Belaggio and Rotelli (Italian brands), SPM (Netherlands)
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and GTK2 (UK brand). One of the companies making footwear for these upscale brands is the ing sneakers for the local and foreign markets. Surabaya is also a port city which facilitates easy export and delivery of goods by sea.
in the country. The Sidoarjo area is being set up by the Indonesian government to become a pilot project of a footwear industry cluster. An industry cluster system seeks to integrate businesses in an industry within a geographical region to their markets and suppliers. This pilot project has been in operation since 2005 and thus today, one can find a well-entrenched footwear industry in Sidoarjo. The footwear industry in Sidoarjo exports approximately 50% of its products. Sidoarjo also hosts the Indonesian Footwear Service Center. The Indonesian Footwear Service Center provides industrial skills training and industrial development for Indonesian footwear maker, especially small and medium sized businesses. It also provides job trainings for the footwear-making workforce.
Yogyakarta Area Province of Yogyakarta is a Special Administrative Region located in the southern part of central Java. It has long been the center of creative industries in the country. As footwear goes, Yogyakarta hosts the Indonesian Center for Leather, Rubber and Plastic (Balai Besar Penelitian dan Pengembangan Kulit, Karet dan Plastik) which provides technical services in the materials essential to footwear-making. Yogyakarta is also the home to the Indonesian Leather Technology Academy (Akademi Teknologi Kulit). These centers were built in Yogyakarta not without
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Sidoarjo is a Regency located in the East Java Province of Indonesia, close to Surabaya. With its 1.6 million inhabitants, the Regency of Sidoarjo is one of the footwear industry hotspots
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PT. Karya Mitra Budi Sentosa of Surabaya. In addition, there are also a number of factories mak-
a reason. Yogyakarta is one of the academic centers of the country. A number of the nation’s premier universities is located in Yogyakarta. It is a highly creative city and also hosts industrial centers, especially in creativity-oriented industries, which footwear-making has quickly become. The footwear market center in Yogyakarta is located in the Manding area of the city. In addition, the greater Special Administrative Area Province of Yogyakarta, in the Regency of Bantul, there is a leather goods center located on Wahidin Sudirohusodo Avenue.
Other Industrial Centers The footwear industry can also be found in other industrial centers throughout the country. These are located in Central Java, East Kalimantan, South Sulawesi, West Sumatera, Riau and North Sumatera Provinces.
Indonesian Footwear Industry : Creativity, Quality and Adaptability The footwear industry in Indonesia today survives on three unique properties: creativity, quality and adaptability. As one tours the Indonesian industrial centers, one can easily witness the creativity of Indonesian footwear makers. Indonesian footwear makers do not simply copy or work to order. Many survive by making their own designs and brands. From small to large manufactur24
ers one can easily find the high degree of creativity. Some of the finest footwear made in Indonesia are made to satisfy the requirements of some
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of Europe’s finest brands. The quality of Indonesian made footwear brands are evident in the increasing amount of orders directed to Indonesia. Since the culture of accepting and working to foreign orders (“outsourcing”) has been well-entrenched in some parts of the industry, it is no wonder that more and more foreign orders flood the country’s manufacturers. As of the writing of this booklet, the footwear industry in Indonesia is booming yet again after experiencing a long
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downturn throughout the mid 2000’s. One reason the Indonesian footwear industry in Indonesia is thriving again is its adaptability. The Indonesian footwear industry when it was being devastated by Chinese imports turned inward and focused on some things the mass-producing factories of China could not produce: quality and creativity. Quality of outputs can only be obtained from good inputs. Inputs include raw materials and skilled workers. In the area of skilled workers, one needs only to tour the various Indonesian footwear making workshops and find that they are really workshops, not sweatshops. The increasingly open and democratic society in Indonesia makes it virtually impossible to keep inhumane working conditions. Indonesia also has some of the most worker-oriented labor laws in the region. Also, an Indonesian company in contract with a foreign (Western) buyer are used to treating their workers humanely to comply with the strict labor regulations typically imposed by such contracts. These regulations typically include conditions on the minimum wages, safety equipment, fire protection and health/sanitation facilities provided for their employees. With these quality and good inputs, the products of Indonesian manufacturers are increasingly favored by foreign footwear manufacturers.
Indonesian Footwear :
Creativity, Quality and Adaptability
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The Government and
the Footwear Industry The role of the Indonesian government in spurring the growth of the footwear industry is through many approaches and supporting efforts. These are through providing regulatory supports, industrial trainings, setting and/or encouraging the forming up of industrial clusters and organizing various promotional efforts and exhibitions and also in managing industrial relations, especially with foreign partners.
and organizes local businesses to go to exhibitions abroad. There is also a virtual exhibition space provided by the National Agency for Export Development, at www.nafedve.com. The Initself to be helpful in keeping jobs at home. In the past few years there had been cases where the government had been able to influence large footwear brands to keep their outsourcing jobs in Indonesia. Indonesia has also been viewed as providing the most conducive footwear business climate in the region. This is evident that in 2009, Nike, a prominent footwear manufacturer decided to close 4 factories in other region, yet none in Indonesia. A Ministry of Trade paper in 2003 outlined development programs for small and medium-sized footwear companies. Some of the programs stated by the Ministry are facilitating specific market development, assisting exhibition and promotion in and out of the country, encouraging intellectual property rights and local brand development, improving human resources in production, assists in capital raising, and implementing ISO 9000 standard. One notable program is the setup of Indonesia Footwear Service Centre (IFSC) in Sidoarjo, East Java. The paper also listed four main development areas: Regency of Bogor and the City of Bandung (in West Java), the Regencies of Sidoarjo and Mojokerto as well as the City of Surabaya (East Java), the City of Medan (North Sumatra), and East Jakarta. From the diagram one can clearly see that a footwear industry cluster is aimed at having a
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donesian government also works as intermediaries during labor disputes and also has shown
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One of the ways that the Indonesian government works to develop the country’s footwear industry is by providing regulatory supports. The government also sponsors regular trade shows
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robust industry having all its supporting elements and markets well integrated. This in turn will enable the industry to better compete while drawing from the agglomerated creative energies within the cluster. It will also act as a catalyst for the development of the region’s economy as the cluster needs an ever increasing supply of everything it needs to support its continued existence. One success story of footwear industrial cluster development by the government is in Sidoarjo. Sidoarjo is a Regency located in the East Java Province of Indonesia, close to Surabaya. With its 1.6 million inhabitants, the Regency of Sidoarjo is one of the footwear industry hotspots in the country. The Sidoarjo area is being set up by the Indonesian government to become a pilot project of a footwear industry cluster. An industry cluster system seeks to integrate businesses in an industry within a geographical region to their markets and suppliers. This pilot project has
CYCLES OF CLUSTER DEVELOPMENT HUMAN RESOURCES
INVESTMENT
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STRONG ECONOMIC INFRASTRUCTURE
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NEW TECHNOLOGY
NEW BUSINESS PARTNER
been in operation since 2005 and thus today, one can find a well-entrenched footwear industry in Sidoarjo. The footwear industry in Sidoarjo exports approximately 50% of its products. Sidoarjo also hosts the Indonesian Footwear Service Center. The Indonesian Footwear Service Center provides industrial skills training and industrial development for Indonesian footwear maker, especially small and medium sized businesses. It also provides job trainings for the footwear-making workforce. A unique feature of the cluster system developed by the government is “the champion.” As the majority of businesses here are on home-industry level, capital will always pose a challenge. The “champions” are high-capital businesses that own their own brands and nurtured a group of
COLLABORATION OF FOOTWEAR INDUSTRY CLUSTER
Establishment of footwear industry cluster and supplier cluster with Decree of Director of Miscellanous Industry (Ministry of Industry)
MOU Footwear Industry Cluster Forum (Core/Champion)
MOU
Progress of collaboration betwen big footwear companies and suppliers
Supplier Industry Forum
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Supplier Industry (Agglomeration Industry) (SME)
Core/Champion Industry (SME)
Collaboration position during diagnostic stage
MOU
29
can submit designs to the champions, and once approved, it will be mass-produced by the group. The cluster development strategy however also has its drawbacks. One of the most obvious drawback is that it can only be developed in areas where existing potentials already exist. This limits its development scope. It also requires much planning, coordination and implementation efforts,
FOOTWEAR INDUSTRIAL CLUSTER FOOTWEAR INDUSTRIAL CLUSTER SUPPLIER
SUPPLIER INDUSTRY INDUSTRY
FOOTWEAR
RELATED
FOOTWEAR INDUSTRY INDUSTRY Core/Champion Core/Champion
SUPPORTING Supporting IndustryINDUSTRY Related
OVERSEAS Overseas MARKET Market DOMESTIC
Domestics
SUPPORT
Financial Service
Research and Development Center
Training Center and Universities
Government Agencies in Central and Regional
Strong Infrastructure
Industry Association
Labor Association
Warehouse and Transportation Services
FOOTWEAR
TARGET STRUCTURE OF A FOOTWEAR INDUSTRIAL TARGET STRUCTURE OF A FOOTWEAR INDUSTRIAL CLUSTER CLUSTER
INDONESIAN
smaller operations. They set up quality standards and train the other workshops. A small business
particularly among the involved parties, which limits the number of cluster that the government is able to develop at any given time. The government however plans to develop more clusters in potential locations. Another example of illustrating the Government’s role in developing the industry, one can look at West Java’s Cibaduyut area (a sub-district of Bandung, the capital of West Java Province). In the case of Cibaduyut (as mentioned in the previous chapter), the Government quickly realized its potentials. This area of around 14 sq. km is dubbed “the Shoe Heaven.” In the 1970s, the Government, through the hand of the Ministry of Industry and the non-profit Institute for Social and Economic Research, Education and Information (LP3ES), tried to develop the area by assigning Technical Service Unit (UPT) for the shoe and leather industry here. The office was later transferred to the West Java Provincial Government and renamed Installation for the Development of Small and Medium Shoe Industry (IKM Persepatuan). The Ministry of Trade and the Postal Corporation (PT Pos Indonesia) has been involved since the 1990s to assist in logistics and delivery. While supply of leather raw materials was negotiated by the Shoe and Leather Cooperatives in the area. 30
In the technical, research and development areas, the government operates a number of agencies. One example is the Indonesian Center for Leather, Rubber and Plastic (Balai Besar Penelitian dan Pengembangan Kulit, Karet dan Plastik) and the Indonesian Leather Technology
INDONESIAN
Academy (Akademi Teknologi Kulit) located in Yogyakarta. The Indonesian Center for Leather, Rubber and Plastic provides technical services in the materials essential to footwear-making. The Indonesia Leather Academy on the other hand provides job training for workers destined for the footwear making industry and also related research and development projects.
FOOTWEAR
On the marketing side, the Ministry of Trade through the National Agency for Export Development (NAFED or known as BPEN in Indonesian) actively promotes Indonesian products nationally and internationally. It has an online virtual exhibition at www.nafedve.com and organizes Trade Expo Indonesia (TEI) in Jakarta, an annual exhibition to promote Indonesian products. It is the country’s largest exhibition on Indonesian products and industries. The Agency also conducts trade mission and send companies to attend international exhibitions in other countries. Other notable exhibitions in Indonesia that the Government supported or co-organized includes: Indo Leather and Footwear, Pameran Alas Kaki, Kulit dan Produk Kulit Indonesia (Indonesian Footwear, Leather and Leather Products Exhibiton, and Pameran Produksi Indonesia (Indonesian Products Expo). All are held in Jakarta. Jakarta is chosen not only because it is the largest and most developed city, but also because it is the largest exporter of footwear in Indonesia (as we can see from the data in the following chapter).
31 INDONESIAN
FOOTWEAR
32
INDONESIAN
FOOTWEAR
Global Trade in
Footwear
Footwear business is a huge business, amounting to US$ 91 billion worth of export in 2008. The People’s Republic of China is the biggest supplier to the world with nearly one-third of world exports. Italy is a distant second and Vietnam third.
WORLD’S FOOTWEAR EXPORT (HS 64) in US$
EXPORTERS
2006
2007
2008
1
China
15,202,613
19,052,504
21,813,376
25,305,588
29,649,896
2
Italy
9,306,159
9,138,428
9,820,190
11,011,374
11,383,657
3
Vietnam
2,725,752
3,078,616
3,654,750
4,076,199
6,857,160
4
Hong Kong
5,698,292
6,144,490
6,024,211
5,962,447
5,980,830
5
Germany
2,249,018
2,530,348
2,856,430
3,271,395
3,907,066
6
Belgium
1,940,964
2,522,321
2,974,277
3,396,171
3,703,291
7
Netherlands
1,365,895
1,525,036
1,607,206
1,842,887
2,164,217
8
France
1,476,242
1,517,628
1,677,839
1,984,034
2,142,325
9
Spain
2,321,866
2,189,177
2,308,977
2,626,815
2,029,042
10 Brazil
1,903,813
1,984,458
1,966,586
2,038,057
2,025,176
11 Portugal
1,651,822
1,599,548
1,595,865
1,801,224
1,975,019
12 Indonesia
1,320,479
1,428,518
1,599,766
1,637,955
1,885,473
13 Romania
1,512,494
1,589,037
1,703,177
1,782,507
1,749,188
14 India
849,999
1,049,255
1,234,676
1,412,039
1,581,201
15 UK
773,415
844,733
946,242
1,074,641
1,135,306
16 USA
650,866
726,828
829,360
887,422
1,038,396
17 Thailand
760,168
892,184
932,932
976,421
960,745
18 Slovakia
452,654
472,148
497,220
685,483
904,741
19 Austria
747,295
791,380
808,194
753,795
839,640
20 Denmark
460,875
489,228
578,924
640,846
742,133
6,544,559
6,990,331
7,844,626
9,035,892
8,959,178
59,915,240
66,556,196
73,274,824
82,203,192
91,613,680
Other Countries TOTAL WORLD EXPORTS Source: ITC - Trademap
33
FOOTWEAR
2005
INDONESIAN
2004
With nearly US$ 2 billion worth of export in 2008, Indonesia is a major player in the worldmarket. It is particularly strong in the sports footwear segment, more than half of Indonesia’s export falls in this category.
Indonesian Export of Foowear Based on Categories No. HS Code
Footwear An
1
640319
Sports Footwear (Other Than Ski Footwear) Nesoi, With Outer Soles Of Rubber, Plastics, Leather Or Composition Leather And Uppers Of Leather
2
640399
Footwear, With Outer Soles Of Rubber, Plastics Or Composition Leather And Uppers Of Leather Nesoi, Not Covering The Ankle
292,172,279
15.496%
3
640411
Sports Footwear, Including Tennis Shoes, Basketball Shoes And Gym Shoes, With Outer Soles Of Rubber Or Plastics And Uppers Of Textile Materials
210,263,412
11.152%
4
640219
Sports Footwear, Other Than Ski-Boots And Cross-Country Ski Footwear, With Outer Soles And Uppers Of Rubber Or Plastics Nesoi
171,426,318
9.092%
5
640419
Footwear, With Outer Soles Of Rubber Or Plastics And Uppers Of Textile Materials, Nesoi
60,925,255
3.231%
INDONESIAN
6
640340
Footwear, With Outer Soles Of Rubber, Plastics, Leather Or Composition Leather And Uppers Of Leather, Incorporating A Protective Metal Toe-Cap
56,737,555
3.009%
7
640359
Footwear, With Outer Soles And Uppers Of Leather Nesoi, Not Covering The Ankle
56,717,503
3.008%
8
640610
Footwear Uppers And Upper Parts, Except Stiffeners
49,609,686
2.631%
9
640299
Footwear, With Outer Soles And Uppers Of Rubber Or Plastics Nesoi, Not Covering The Ankle
31,287,448
1.659%
10 640391
Footwear, With Outer Soles Of Rubber, Plastics Or Composition Leather And Uppers Of Leather Nesoi, Covering The Ankle
20,886,435
1.108%
FOOTWEAR
11 640590
Footwear Nesoi
15,310,716
0.812%
12 640699
Parts Of Footwear Nesoi, Including Removable Insoles, Heel Cushions And Similar Articles; Gaiters, Leggings And Similar Articles, And Parts Thereof
5,215,359
0.277%
13 640320
Footwear, With Outer Soles Of Leather And Uppers Which Consist Of Leather Straps Across The Instep And Around The Big Toe
4,469,963
0.237%
14 640420
Footwear, With Outer Soles Of Leather Or Composition Leather And Uppers Of Textile Materials
4,396,791
0.233%
15 640220
Footwear, With Outer Soles And Uppers Of Rubber Or Plastics, With Upper Straps Or Thongs Assembled To The Sole By Means Of Plugs (Zoris)
2,993,152
0.159%
16 640212
Ski-Boots, Cross-Country Ski Footwear And Snowboard Boots, With Outer Soles And Uppers Of Rubber Or Plastics (Excl. Waterproof Footwear Of Heading No
2,842,541
0.151%
17 640510
Footwear Nesoi, With Uppers Of Leather Or Composition Leather
2,828,185
0.150%
18 640520
Footwear Nesoi, With Uppers Of Textile Materials
2,748,613
0.146%
19 640620
Footwear Outer Soles And Heels, Of Rubber Or Plastics
2,090,528
0.111%
20 640199
Waterproof Footwear With Bonded Or Cemented Outer Soles And Uppers Of Rubber Or Plastics Nesoi, Not Covering The Ankle
1,183,438
0.063%
21 640312
Ski-Boots, Cross-Country Ski Footwear And Snowboard Boots, With Outer Soles Of Rubber, Plastics, Leather Or Composition Leather And Uppers Of Leather.
756,716
0.040%
22 640351
Footwear, With Outer Soles And Uppers Of Leather Nesoi, Covering The Ankle
733,850
0.039%
23 640110
Waterproof Footwear With Bonded Or Cemented Outer Soles And Uppers Of Rubber Or Plastics, Incorporating A Protective Metal Toe-Cap
234,141
0.012%
24 640691
Parts Of Footwear Nesoi, Of Wood
109,267
0.006%
25 640192
Waterproof Footwear With Bonded Or Cemented Outer Soles And Uppers Of Rubber Or Plastics Nesoi, Covering The Ankle But Not Covering The Knee
98,956
0.005%
26 640291
Footwear, With Outer Soles And Uppers Of Rubber Or Plastics Nesoi, Covering The Ankle
80,335
0.004%
d Related Types
34
Total Export
Export in 2008
%
(US$) 889,355,024
47.169%
1,885,473,466 Source: ITC - Trademap
EXPORT BY PROVINCE When you look to the regions of Indonesia, DKI Jakarta, the nation’s capital, is the largest exporter of footwear. The massive industrialization of Java in recent years makes the island a dominant producer, with three of the island’s six provinces sitting on the top 5 of exporters. The leading provinces in terms of value of export for all categories of footwear are as follow: No. PROVINCE VALUE EXPORTED : US$ 1 D K I Jakarta 2 East Java 3 Riau
2004
2005
2006
2007
2008
1,147,891,878 1,237,697,969 1,358,403,671 1,349,068,832 1,666,660,733 150,909,339
168,609,111
182,556,568
229,063,383
171,046,247
854,877
3,045,992
18,972,813
26,528,972
33,629,808
4 Central Java
9,753,639
11,387,466
12,822,841
14,592,756
9,646,146
5 B ali
9,990,848
7,523,450
26,922,746
18,662,253
4,289,338
6 East Java
111,587
87,264
678
3,656
128,797
7 North Sumatera
797,302
103,573
69,984
35,305
72,336
Source: BPS-Statistics Indonesia
35
HS 640219 Sports Footwear, Other Than Ski-Boots And Cross-Country Ski Footwear, With Outer Soles
No. PROVINCE VALUE : US$ DKI Jakarta
2
East Java
2005
2006
2007
2008
178,481,719
162,026,859
124,757,073
119,145,705
163,976,271
8,170,707
5,695,539
6,582,105
6,774,456
6,914,104
3
Central Java
62,844
587
232,531
1,092,959
498,500
4
Bali
95,440
26,892
149,398
158,671
37,383
Other Provinces
TOTAL
284,440
31
6
31,925
60
187,095,150
167,749,908
131,721,113
127,203,716
171,426,318
Source: BPS-Statistics Indonesia
HS 640199 Waterproof Footwear With Bonded Or Cemented Outer Soles And Uppers Of Rubber Or Plastics, Incorporating A Protective Metal Toe-Cap No. PROVINCE VALUE : US$ 1
DKI Jakarta
2
Bali
3
East Java
4
TOTAL
2004
2005
2006
2007
2008
2,048,249
1,318,682
2,098,201
1,404,175
661,470
203,936
243,375
189,396
175,413
271,455
1,005,312
452,792
397,277
312,022
207,075
North Sumatera
37,611
31,671
27,933
3,278
36,536
Other Provinces
316,906
90,023
292,048
2,788
6,902
3,612,014
2,136,543
3,004,855
1,897,676
1,183,438
Source: BPS-Statistics Indonesia
FOOTWEAR
1
2004
INDONESIAN
And Uppers Of Rubber Or Plastics Nesoi
HS 640299 Footwear, with outer soles and uppers of rubber or plastic nesol, not covering the angkle DKI Jakarta East Java Central Java Bali
in US$ No. PROVINCE 1 2 3 4
DKI Jakarta East Java Central Java Bali Other Provinces TOTAL
2008 163,976,271 6,914,104 498,500 37,383 60 171,426,258
Source: BPS-Statistics Indonesia
HS 640319 Sports Footwear (Others than ski footwear) Nesoi, with outer soles of rubber, plastic, leather 36
of composition leather and uppers of leather. DKI Jakarta
in US$ INDONESIAN
No. PROVINCE
FOOTWEAR
1 2 3 4
DKI Jakarta East Java Central Java Bali Other Provinces TOTAL
2008
East Java Central Java Bali
867,863,597 14,258,616 7,097,169 79,145 56,497 889,355,024
Source: BPS-Statistics Indonesia
HS 640399 Footwear, with outer soles of rubber, plastic or composition leather and uppers of leather nesoi, not covering the ankle DKI Jakarta East Java Bali
in US$
Riau
No. PROVINCE 1 2 3 4
DKI Jakarta East Java Bali Riau Other Provinces TOTAL
2008 240,892,746 51,245,865 31,348 2,265 55 292,172,224
Source: BPS-Statistics Indonesia
Indonesian footwear export may have fluctuates in value, but 2008 has been a record year for most categories. The following charts show the total value of Indonesian footwear exports from all provinces for the past 5 years.
HS 640340 Footwear, with outer soles of rubber, plastics, leather or composition leather and uppers of leather, incorporating a protective metal toe-cap
in US$
Source: BPS-Statistics Indonesia
37
HS 640359 ankle. in US$
INDONESIAN
Footwear, with outer soles and uppers soles and uppers of leather nesoi, not covering the
FOOTWEAR
Source: BPS-Statistics Indonesia
HS 640391 Footwear, with outer soles of rubber, plastics or composition leather and uppers of leather nesoi, covering the ankle.
in US$
Source: BPS-Statistics Indonesia
EXPORT BY COUNTRY The world’s biggest market for footwear is USA with more than US$ 20 billion. For Indonesia, USA is also the largest customer, taking in around US$ 400 million worth of goods every year for the past five years.
Ten Largest Importers of Indonesian Footwear (HS 64) NO. EXPORT DESTINATION COUNTRY VALUE EXPORTED TO : US$
38
2008
2004
2005
2006
2007
468,713,427
472,167,651
450,319,110
383,962,965
393,952,553
INDONESIAN
1
UNITED STATES
2
BELGIUM
90,955,285
104,159,003
121,699,849
146,779,075
187,861,993
3
GERMANY
77,767,591
97,118,279
131,648,852
156,535,862
187,077,717
4
UNITED KINGDOM
118,204,599
131,945,662
129,985,145
126,466,851
152,847,305
5
ITALY
46,628,696
59,867,872
97,432,596
119,746,330
139,548,741
6
NETHERLANDS
78,359,636
83,292,935
112,096,142
99,213,069
100,265,047
7
JAPAN
73,382,738
88,349,524
96,490,164
83,512,653
90,234,971
8
PEOPLE'S REPUBLIC OF CHINA
9,071,937
15,334,028
18,818,024
37,720,009
64,366,024
9
FRANCE
38,271,587
25,901,706
29,672,044
43,054,661
46,909,773
10 SINGAPORE
14,025,548
35,572,645
50,013,978
45,973,909
41,673,485
Source : BPS - Statistics Indonesia
HS6402190000
FOOTWEAR
Sports footwear with outer soles,rubber or plastics No. COUNTRY VALUE EXPORTED TO : US$
2004
2005
2006
2007
2008
1
UNITED STATES
66,902,612
63,314,087
40,405,681
31,326,410
37,487,638
2
BELGIUM
31,170,914
22,109,712
23,707,130
25,352,543
25,133,936
3
JAPAN
8,291,160
10,441,982
13,233,843
13,601,546
22,415,509
4
CHINA
2,131,054
4,020,963
3,073,330
7,703,109
18,044,037
5
MEXICO
5,184,097
3,839,686
3,373,893
4,996,816
9,919,062
6
BRAZIL
1,218,513
1,398,514
3,620,640
4,576,478
6,891,614
7
UNITED KINGDOM
14,954,864
15,587,418
9,565,977
8,295,594
6,353,251
8
GERMANY
4,196,378
3,553,254
1,772,629
3,336,067
5,392,309
9
NETHERLANDS
9,852,508
7,369,627
4,531,488
2,818,078
4,382,472
6,421,487
3,009,688
7,217,991
4,162,480
3,602,926
10 ITALY
Source : BPS - Statistics Indonesia
HS 6402990000 Footwear not covering the ankle with outer soles, rubbers, plastics
Japan Malaysia
No. Country
2008 Value (US$)
1
JAPAN
4,423,661
Italy
2
MALAYSIA
4,262,310
Germany
3
ITALI
2,436,867
Singapore
4
GERMANY
1,844,895
Canada
5
SINGAPORE
1,711,272
USA
6
CANADA
1,534,216
7
USA
1,338,915
8
TAIWAN
1,334,075
9
FRANCE
1,225,568
Taiwan France Australia
10 AUSTRALIA
1,091,358
Other Countries
10,084,311
TOTAL
31,287,448 Source : BPS - Statistics Indonesia
HS 6403191000
No. Country
2008 Value (US$)
1
UNITED STATES
67,857,154
2
GERMANY
28,732,807
3
NETHERLANDS
20,444,742
4
UNITED KINGDOM
20,318,485
5
BELGIUM
16,449,315
6
ITALY
10,916,286
7
RUSSIA
5,638,170
8
JAPAN
5,351,869
9
SPAIN
4,974,152
10 CHINA
3,293,684
Other Countries
TOTAL
26,284,158 210,260,822
Source : BPS - Statistics Indonesia
USA Germany Netherlands UK Belgium Italy Russia Japan Spain China Other Countries
FOOTWEAR
Sports footwear fitted with studs, bar & the like,foot ball,running,golf shoes
39 INDONESIAN
HS 6403199000 Sports footwear not fitted with studs, bar & the like NO. COUNTRY VALUE EXPORTED TO : US$
2004
2005
2006
2007
2008
334,793,056
337,193,367
338,140,016
190,977,930
183,004,587
1
UNITED STATES
2
BELGIUM
35,212,335
51,595,233
67,963,189
79,609,723
89,258,544
3
UNITED KINGDOM
67,776,683
84,511,878
88,422,983
57,755,603
73,435,911
4
GERMANY
25,088,649
37,599,275
53,684,518
63,631,429
67,941,648
5
ITALY
19,229,802
32,692,018
54,525,743
40,978,564
34,227,408
6
NETHERLANDS
40,963,827
47,530,840
79,025,233
37,586,795
31,535,040
7
CHINA
4,120,753
6,927,067
11,606,080
18,715,421
26,426,860
8
JAPAN
35,683,263
35,616,825
44,110,727
24,465,763
18,964,428
9
FRANCE
16,063,837
9,980,218
15,204,730
20,537,588
15,842,120
12,934,405
14,744,878
26,036,649
14,702,512
15,093,397
10 SPAIN
Source : BPS - Statistics Indonesia
40
INDONESIAN FOOTWEAR
HS 6403400000 Footwear,incorp. a protective metal toe cap base/platform of wood NO. EXPORT DESTINATION COUNTRY VALUE EXPORTED TO : US$
2004
2005
2006
2007
2008
1,586,801
3,369,938
13,602,091
24,079,821
30,639,639
611,037
2,834,221
5,242,999
9,726,352
15,653,142
1,032,482
1,669,799
2,310,303
2,375,007
2,818,710
40,743
-
22,871
1,053,181
1,628,447
1
SINGAPORE
2
AUSTRALIA
3
PHILIPPINES
4
FINLAND
5
NEW ZEALAND
837,408
1,098,675
1,615,210
971,234
1,435,736
6
PAPUA NEW GUINEA
230,697
410,381
502,446
882,713
1,106,113
7
CANADA
988,541
2,446,142
617,702
964,361
787,049
8
UNITED KINGDOM
761,914
1,314,160
4,163,466
2,767,683
665,996
9
NETHERLANDS
1,376,385
509,761
683,834
526,742
469,054
674,769
1,137,939
1,862,234
591,848
388,865
10 THAILAND
Source : BPS - Statistics Indonesia
HS 6403590000 Other footwear with outer sole of leather oth than covering the ankle
Italy Germany Netherlands Belgium
No. Country
2008 Value (US$)
1
ITALY
17,969,625
2
GERMANY
12,583,551
3
NETHERLANDS
12,559,482
4
BELGIUM
6,010,043
France
5
FRANCE
1,905,883
USA
6
UNITED STATES
1,474,657
UK
7
UNITED KINGDOM
812,261
Australia
8
AUSTRALIA
732,270
Japan
9
JAPAN
675,137
New Zealand
10 NEW ZEALAND Other Countries TOTAL
468,951 1,525,643 56,717,503
Source : BPS - Statistics Indonesia
INDONESIAN
HS 6403990000 Other footwear other than covering the ankle
2008 Value (US$)
Italy
1
ITALY
40,107,853
2
UNITED KINGDOM
39,146,327
3
DENMARK
37,657,693
Denmark
4
GERMANY
35,557,624
Germany
5
UNITED STATES
26,533,277
USA
6
NETHERLANDS
13,787,936
Netherlands
7
FRANCE
12,963,680
France
8
SOUTH KOREA
10,588,676
9
JAPAN
8,725,847
10 CHINA
7,925,544
Other Countries TOTAL
59,177,822 292,172,279 Source : BPS - Statistics Indonesia
UK
South Korea Japan China
FOOTWEAR
No. Country
41
HS 6404119000 Footwear with outer sole f rubbr/plastc sprt footwr fitt w/o spik, cleat/th like
No. Country
2004 Value (US$)
2005 Value (US$)
2006 Value (US$)
2007 Value (US$)
2008 Value (US$)
1
UNITED STATES
9,411,001
7,436,885
5,556,180
48,561,331
58,156,803
2
BELGIUM
3,500,509
3,860,520
1,716,160
30,338,256
43,592,265
3
MEXICO
7,003,451
8,242,603
10,407,944
14,988,824
16,159,156
4
ITALY
5,671,592
5,717,846
6,492,762
7,967,425
13,743,646
5
FRANCE
3,313,508
653,558
297,986
3,992,679
9,994,634
6
GERMANY
2,325,532
2,379,681
2,105,920
4,320,403
7,999,802
7
NETHERLANDS
14,915,252
10,707,994
6,745,330
6,537,876
6,654,595
8
CHINA
981,158
1,408,148
841,353
2,394,558
6,059,493
9
JAPAN
17,695,927
24,105,559
17,928,517
3,754,099
4,804,179
14,799,396
14,751,838
2,909,289
1,735,726
3,907,489
10 UNITED KINGDOM 42
Source : BPS - Statistics Indonesia
INDONESIAN
HS 6406109000 Uppers & parts thereof, oth than stif feners of oth than metal
FOOTWEAR
No. Country
2004 Value (US$)
2005 Value (US$)
2006 Value (US$)
2007 Value (US$)
2008 Value (US$)
1
SLOVAKIA
16,664,839
24,398,224
29,985,181
24,566,776
17,641,875
2
GERMANY
7,995,772
9,610,952
16,863,839
14,113,534
13,028,800
3
THAILAND
2,883,980
846,472
6,278,193
5,171,371
6,675,111
4
PORTUGAL
18,956,800
19,015,030
7,998,896
6,059,909
4,009,783
5
AUSTRALIA
3,442,472
5,117,424
3,994,959
4,148,453
3,372,393
6
JAPAN
5,187,427
7,139,879
8,876,669
5,980,420
2,122,857
7
UNITED KINGDOM
-
-
23,500
27,532
817,296
8
BRAZIL
5
1,510
65,381
205,878
159,370
9
DENMARK
111,446
131,785
220,215
366,420
151,953
10 BANGLADESH
155,479
67,350
37,339
152,931
126,235
Source : BPS - Statistics Indonesia
43 INDONESIAN
FOOTWEAR
44
INDONESIAN
FOOTWEAR
Ministry of Trade Republic of Indonesia
JI. M.I. Ridwan Rais No.5 Main Building - 4th Floor Jakarta 10110 INDONESIA Phone. [62-21] 385 8171 (hunting) Fax. [62-21] 235 28691 E-mail. mendag@depdag.go.id
Secretariat General JI. M.I. Ridwan Rais No.5 Main Building I, 7th Floor Jakarta 10110 - INDONESIA Phone. (62-21) - 23522040 ext. 32040 Fax. (62-21) - 23522050 E-mail sesjen@depda9•90.id
Floor, Jakarta 10110 - INDONESIA Phone (62-21) 23527240 Fax
(62-21) 23527250
kabpen@depdag.go.id
Commodity Future Trading Regulatory Agency (COFTRA) JI. Imam Bonjol NO.61 Jakarta 10310 -INDONESIA Phone (62-21) 315 6315 Fax
(62-21) 315 6135
E-mail. kabappebti@depdag.go.id Website www.bappebti.go.ld Trade Research and Development Agency (TREDA)
Directorate General of Foreign Trade JI. M.I. Ridwan Rals No. 5 Main Building, 9th Floor Jakarta 10110 - INDONESIA Phone (62-21) 23525160 Fax (62-21) 23525170 E-mail djdaglu@depdag.go.id
Directorate General of International Trade Cooperation JI. M.I. Rldwan Rais No.5 Main Building, 8th Floor Jakarta 10110 - INDONESIA Phone (62-21) 23526200, 23528600 Fax
(62-21) 23526210
djkpi@depdag.go.id
45
Gedung Bumi Daya Plaza 4th Floor
JI. M.I. Ridwan Rais No. 5 Main Building 4th Floor, Jakarta 10110 - INDONESIA Phone (62-21)3858171 (hunting) Fax
(62-21) 23528691
E-mail kabalitbang@depdag.go.id
FOOTWEAR
Directorate General of Domestic Trade Jl. M.I. Ridwan Rais No.5 Building I, 6th Floor Jakarta 10110 - INDONESIA Phone (62-21) 23524120, 2352 8620 Fax (62-21) 23524130 E-mail dirJen-pdn@depdag.go.id
JI. M.I. Rldwan Rais No.5 Main Building, 4th
INDONESIAN
Inspectorate General JI. M.I. Ridwan Rais No.5 Building I, 10th Floor Jakarta 10110 - INDONESIA (62-21) - 384 8662, 3841961 Ext.1226 (62-21) - 384 8662 E-mail irjen@depdag.go.id
National Agency for Export Development
INDONESIAN TRADE ATTACHES Australia Indonesian Embassy 8, Darwin Avenue, Yarralumia, Canberra Australia A.C.T. 2600 T: (61-02) - 62508654 F: (61-02) - 62730757 atdag-aus@depdag.go.id www.kbri-canberra.org.au
46
Italy Indonesian Embassy Via Campania, 55 Rome Italia 00187 T: (39-06) - 4200911, 42009168 F: (39-06) - 4880280, 42010428 atdag-ita@depdag.go.id
Singapore Indonesian Embassy 7 Chatsworth Road Singapore 249761 T: (65) - 67375420, 68395458 F: (65) - 67375037, 67352027 atdag-sgp@depdag.go.id
INDONESIAN FOOTWEAR
Belgium Indonesian Mission to the European Union Boulevard de la Woluwe 38 Brussels, Belgium 1200 T: (322) - 7790915 F: (322) - 7728190 atdag-blx@depdag.go.id
Japan Indonesian Embassy 5-2-9, Higashi Gotanda Shinagawa-ku Tokyo, Japan 1410022 T: (81-3) - 34414201, 34470596 F: (81-3) - 34471697 atdag-jpn@depdag.go.id www.indonesian_embassy.or.jp
South Korea Indonesian Embassy 55, Yoido-dong Young Deoung po-Ku Seoul Korea Selatan T: (82-2) - 7835371-2, 7827750 F: (82-2) - 7804280, 7837750 atdag-kor@depdag.go.id
Canada Indonesian Embassy 55 Parkdale Avenue, Ottawa, Ontario, Canada 1KY - 1E5 T: (613) - 7241100 ext. 306 F: (613) - 7241105, 7244959 atdag-can@depdag.go.id commerce@indonesia-ottawa.org www.indonesia-ottawa.org
Malaysia Indonesian Embassy No. 233 Jalan Tun Razak Kuala Lumpur, Malaysia 50400 T: (60-3) - 21164000, 21164067 F: (60-3) - 21167908, 21448407 atdag-mys@depdag.go.id www.kbrikl.org.my
Spain Indonesian Embassy 65, Calle de Agastia Madrid, Spain 28043 T: (34-91) - 4130294 F: (34-91) - 4157792 atdag-esp@depdag.go.id
Denmark Indonesian Embassy Orehoj Alle 1, 2900 Hellerup, Copenhagen, Denmark T: (45) - 39624422 ext 215 F: (45) - 39624483 atdag-dnk@depdag.go.id
Netherlands Indonesian Embassy 8, Tobias Asserlaan The Hague, Netherlands 2517 KC T: (31-70) - 310 8115 F: (31-70) - 364 3331 atdag-nld@depdag.go.id
Egypt Indonesian Embassy 13, Aisha EL Temoria St. Garden City P.O. BOX 1661 Cairo, Egypt T: (20-2) - 7944698, 7947200/9 F: (20-2) - 7962495 atdag-egy@depdag.go.id
People’s Republic of China Indonesian Embassy Dongzhimenwai Dajie No. 4 Chaoyang District, Beijing, China 100600 T: (86-1) - 65324748 -65325488-3014 F: (86-1) - 65325368 atdag-chn@depdag.go.id
Switzerland Indonesian Mission on The United Nations And Other International Organizations 16, Rue de Saint Jean Geneva Switzerland 1203 T: (41-22) - 3455733 F: (41-22) - 3383397 atdag-che@depdag.go.id
France Indonesian Embassy 47-49, Rue Cortambert Paris, France 75116 T: (33-1) - 450302760 ext. 418, 45044872 F: (33-1) - 45045032 atdag-fra@depdag.go.id
Philippines Indonesian Embassy 185, Salcedo Street Legaspi Village, Makati City, Metro Manila T: (63-2) - 8925061-68 F:(63-2) - 8925878, 8674192 atdag-phl@depdag.go.id
Germany Indonesian Embassy Lehter Strasse 16-17 D-10557 Berlin, Germany 10557 T: (49-30) - 4780700 F: (49-30) - 47807209 atdag-deu@depdag.go.id
Russia Indonesian Embassy Apt. 76, Entr. 3 Korovy val 7 Moscow Russia 117049 T: (7-495) - 2385281 F: (7-495) - 2385281 atdag-rus@depdag.go.id
India Indonesian Embassy 50-A Chanakyapuri New Delhi, India 110021 (09-111) - 6114100 (09-111) - 6885460, 6886763 atdag-ind@depdag.go.id
Saudi Arabia Indonesian Embassy Riyadh Diplomatic Quarter P.O. Box 94343 Riyadh, Saudi Arabia 11693 T: (966-1) - 4882800, 4882131 ext 120 F: (966-1) - 4882966 atdag-sau@depdag.go.id
Thailand Indonesian Embassy 600-602 Pitchburi Road, Rajthevi P.O.Box 1318 Bangkok, Thailand 10400 T: (66-2) - 2551264 ex 123 F: (66-2) - 2551264, 2551267 atdag-tha@depdag.go.id United Kingdom Indonesian Embassy 38 Grosvenor Square London, England W1K2HW T: (44-20) - 72909613, 74997881 F: (44-20) - 74957022 atdag-gbr@depdag.go.id United States of America Indonesian Embassy 2020 Massachusetts Avenue, N.W. Washington DC, USA 20036 T: (1-202) - 7755350, 7755200 ext 350 F: (1-202) - 7755354, 7755365 atdag-usa@depdag.go.id www.inatrade-use.org
INDONESIAN TRADE PROMOTION CENTER ITPC Barcelona Calle Aribau 250, Ground Fl. Barcelona, Spain abuamar98@yahoo.com itpc-esp@depdag.go.id ITPC Budapest 1051 Budapest, Bajcsy-Zsilinszky ut.12, IV Floor, No. 409 Budapest Hongaria T: (36-1) 3176382 F: (36-1) 2660572 itpc-hun@depdag.go.id ITPC Busan 103 Korea Express Building 1211-1 Choryang Dong, Dong-GU Busan, South Korea T: (82-51) 4411708 F: (82-51) 4411629 ari_satria2000@yahoo.com ITPC Chennai Ispahani Center - 2nd Floor 123/124, Nungambakkan High Road, Chennai Chennai, India itpc-ind@depdag.go.id
ITPC Hamburg Multi Buro Servise Glokengisserwall 1720095 Hamburg - Germany T: (49-40) 33313-333 F: (49-40) 33313-377 inatrade@itpchamburg.de ITPC Jeddah Jeddah Intl.Business Center / JIBC 2nd Fl PO.BOX 6659, Jeddah 21452KSA. Ruwais District, Jeddah, Saudi Arabia itpc-sau@depdag.go.id ITPC Johannesburg Suite 02/E4, 2nd Floor, Village Walk Sandton P.O. Box 2146, RSA Johannesburg X9916 T: (27)-118-846-240 F: (27)-118-846-242 itpc-zaf@depdag.go.id ITPC Lagos Lagos, Nigeria itpc-nga@depdag.go.id
ITPC Mexico City CENIT Plaza Arquimedes , Office : 105 Arquimedes No. 130 Polanco, Del. Miguel Hidalgo C.P 11570 MEXICO, D.F ikhwan_aman@yahoo.com itpc-mex@depdag.go.id ITPC Milan Via Vittor Pisani, 8 - 6째 Piano 20124 Milano, Italy T: (39-02) 3659 8182 F: (39-02) 3659 8191 itpc-ita@depdag.go.id www.itpcmilan.com
United Arab Emirates Indonesian Consulate General Villa No. 1 Community 322/2A Al Hubaida P.O. Box 73759 Dubai UAE T: (971-4) 3985666, 3985103 F: (971-4) 23980804 Hong Kong Indonesian General Consulate 127-129 Leighton Road, 6-8 Keswick Street Causeway Bay Hongkong T: (852) - 28904421 - 28902481 F: (852) - 28950139 kondag-hkg@depdag.go.id
47
ITPC Osaka ITM-4-J-8, Asia and Pasific Trade Center 2-1-10 Nanko Kita, Suminoe-ku Osaka, Japan T: (81-6) 66155350 F: (81-6) 66155351 itpc-jpn@depdag.go.id www.itpc.or.jp ITPC Santiago Claro Solar Street No. 835, Office 304 Temuco District and City Santiago, Chili aliakbar_h2000@yahoo.com ITPC Sao Paulo Alameda Santos, 1787 - Conj. 111 Cerqueira Cesar, CEF: 01419.002 Sao Paulo, Brasil T: (55-11) 32630472 / 35411413 F: (55-11) 32538126 itpc-bra@depdag.go.id ITPC Shanghai Xu Hui Distrik, Wend Ding Road 4th Fl, Shanghai RRC itpc-chn@depdag.go.id ITPC Sydney Level 2, 60 Street, NSW 2000 Sydney, Australia T: (61-2) 92528783 F: (61-2) 92528784 itpc-aus@depdag.go.id www.itpcsydney.com ITPC Vancouver 1500 West Georgia, Vancouver Vancouver, Canada Olvyandrinita@yahoo.com itpc-can@depdag.go.id
FOOTWEAR
ITPC Dubai Arbift Tower4 floor # 403 Baniyas street Deira PO.Box 41664, Dubai - UAE T: (971-4) 2278544 F: (971-4) 2278545 itpc-are@depdag.go.id www.itpcdubai.com
ITPC Lyon Lyon, France bambang.purnomo@gmail.com itpc-fra@depdag.go.id
CONSULATE-GENERALS
INDONESIAN
ITPC Chicago 70 West Erie 3rd FL. Chicago, Illinois 60610, USA itpc-chicago@depdag.go.id
ITPC Los Angeles 3457, Wilshire, Blvd, Suit 101 Los Angeles, USA 90010 T: (1-213)-3877041 F: (1-213)-3877047 itpc-usa@depdag.go.id itpcla@sbcglobal.net www.itpcla.org
INDONESIAN ECONOMIC AND TRADE OFFICE
Taiwan Indonesian Economic and Trade Office to Taipei Twinhead Bld 6F No. 550 Rui Goang Road eihu District Taipei Taiwan 114 (886-2)-87526170 (886-2)-87423706 kakdei-twn@depdag.go.id http://kdei-taipei.org
List of Companies
48
INDONESIAN
PT. KHARISMA INDONESIA Address : JL. Raya Candi No.20 Sidoarjo. Jawa Timur – Indonesia Tlp : 031-8056294 Fax : 031-89633558
PT. Golden Step Indonesia Address : Jl. Tambak Sawah No. 06 Waru, Sidoarjo 61256- Indonesia Tlp : 031- 8667788 Fax : 031- 8666752
UD. JALUR REJEKI FOOTWEAR MANUFACTURE Address : JL. Tropodo N.281-287 Sidoarjo East Java - Indonesia Tlp : 031-8667178-80 Fax : 031-8671326
CV. Kenie Karya Indonesia Address : Jl. Delman Indah I/7 Tanah Kusir, Jakarta Selatan Tlp : (021) 7238407 Fax : (021) 7239001
PT. Surya Intrindo Makmur TBK Address : Kompleks Permata Industri E10-11 Tambak Sawah Waru Sidoarjo Indonesia Tlp : 031-8683888 Fax : 031-8674445
PT. Gading Wana Raya Lestari Address : Jl. Pangeran Jayakarta Komplek 24 No. 56, Jakarta 10730 Tlp : (021) 6298645-48 Fax : (021) 6497482
PD. Karunia Address : JL. Raya SBY – Krian KM. 23 Desa Siderejo, Sidoarjo 61262, Jawa Timur- Indonesia Tlp : 031- 8973623-24 Fax : 031-8973625
PT. PRESTASI IDE JAYA Address : JL. Raya Industri No. 17 Desa Betro. Kecamatan Sedati Kabupaten Sidoarjo 61253 Indonesia Tlp : 031- 8910135 Fax : 031- 8911787
FOOTWEAR
PT. Satrindo Utama Makmur Address : JL. Raya Tambak Sawah No. 3 Tropodo Waru Sidoarjo – Indonesia Tlp : Fax : PT. Berkat Ganda Sentosa Address : JL. Gunung Gangsir Desa Randupitu Kecamatan : Gempol – Pasuruan Jawa Timur – Indonesia Tlp : 0343- 631624 Fax : 0343- 631395
PT. Karya Mitra Budi Sentosa Address : Jl. Jaksa Agung Suprapto No.39-41 Kav. 36 Surabaya 60272 Indonesia Tlp : 031- 5320945 Fax : 031-5313799 PT. Young Tree Industries Address : JL. Raya Banar RT: 07 RW :02 Ketimang Wonoayu Sidoarjo – Jawa Timur Indonesia Tlp : 031-8857417 Fax : 031-8857416
Gradial Perdana Perkasa Address : JL. Simo Tambaan II No.72A Surabaya 60188 – Indonesia Tlp : 031-7492022, 031- 7493328 Fax : 031- 7481322
PT. Daimatu Industry Indonesia Address : Jl. Dinoyo 31 Surabaya Indonesia Tlp : 031- 578187, 031- 575547 Fax : 031- 578187
PT. Artisanjaya Internusa Makmur Address : Jl. Raden Intan No. 105 Arjosari, Malang Jawa Timur – Indonesia Tlp : 0341- 414621 Fax : 0341- 414622 ,0341- 492991
PT. Rikio Indonesia Address : JL. Raya Sentul Purwodadi Pasuruan Jawa Timur – Indonesia Tlp : 0341 -425102 , 031- 8467252 Fax : 0341- 425103
CV. Karatu Abadi Jaya Address : Jl. Raya Pradah Indah 39 Surabaya – Indonesia Tlp : 031-7319400 Fax : 031- 7318134 PT. Surya Itrindo Makmur TBK Address : JL. Kompleks Permata Industri Blok E1011, Tambak Sawah Waru Sidoarjo 61256 Indonesia Tlp : 031- 8683888 Fax : 031- 8674445 PT. Dwi Prima Sentosa Address : Desa Watesnegoro Dusun Gelatik RT : 006 RW : 005 Kecamatan : Ngoro Mojokerto Jawa Timur 61385 – Indonesia Tlp : 62-321-6817610
PT. Kega (fashion Addict) Address : Jl. Gunawarman 71 Kebayoran Baru, Jakarta Selatan Tlp : (021) 72800169 , 7665648 Fax : (021) 7665648 PT. WIDAYA INTI PLASMA Address : JL. Industri No. 08 Bringin Bendo TamanSidoarjo Jawa Timur Tlp : 031-7886584 Fax : 031-07886584 PT. Lezen Indonesia Address : Jl. Rajawali Blok Industri No.9 Betro – Sedati Sidoarjo 61253 Indonesia Tlp : Fax : PT. Cinderela Vila Indonesia Address : JL. Tanjung Sari No.20 Tandes Surabaya – Indonesia Tlp : 031- 7492520-5 Fax : 031- 7492528
CV. Sepatu Sani Address : JL. Abdul Rachman Saleh 17 Pakis , Malang, Jawa Timur – Indonesia Tlp : 0341- 792222 Fax : 0341- 792221 PT. Cinderella Vila Indonesia Address : Jl. Tanjung Sari No. 20 Tandes Surabaya – Indonesia Tlp : 031- 7492520-5 Fax : 031- 7492528 PT. Golden Footwear Indotama Address : Jl. Raya Ketajen No. 08 Gedangan, Sidoarjo 61254 Indonesia Tlp : 031- 8918353-6 Fax : 031- 8918358 PT. Karya Mekar Dewatamali Address : Jl. Soekarno Hatta 174-174A Jombang 61413, Jawa Timur – Indonesia Tlp : 0321- 866155 Fax : 0321- 861009 D & A Handmade Products Address : Jl. Fatmawati 52, Wisma Subud 34 A, Cilandak, Jakarta Selatan Tlp : (021) 7502809,98289472, 7660254 Fax : (021) 7502809, 7667305
49
FOOTWEAR
PT. Sumber Kreasi Fumiko Address : Jl. Sentani Raya Blok M No. 29 Gunung Sahari Utara, Sawah Besar, Jakarta Pusat 10720 Tlp : (021) 6402277 FX : (021) 64713562, 645871
PT. Wangta Agung Address : JL. Simo Pomahan 144P Tandes Surabaya – Indonesia Tlp : 031- 7493302 Fax : 031- 7481056
INDONESIAN
PT. Halim Jaya Sakti Address : Jl. Raya Pabean No. 109. Kejapenan, Gempol Pasuruan 67155 – Indonesia Tlp : 0343- 8511080/81 Fax : 0343- 852103
PT. Inti Dragon Suryatama Address : Pahlawan No.44 Kelurahan : Kranggan, Kecamatan : Prajurit Kulon Mojokerto61321 Indonesia Tlp : 0321-321866 Fax : 0321- 322886
50
INDONESIAN
FOOTWEAR
51 INDONESIAN
FOOTWEAR
52
INDONESIAN
FOOTWEAR