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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

E-mail

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

E-mail

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


Indonesian Footwear