JAKARTA - The footwear industry is one of the mainstay manufacturing sectors that is able to make a major contribution to the national economy. This is reflected in the growth of the leather industry group, leather goods and footwear which reached 9.42 percent in 2018, a significant increase compared to 2017 at around 2.22 percent. Last year's achievement exceeded national economic growth at 5.17 percent.
"Then, national footwear exports also increased by 4.13 percent, from 2017 amounting to US$ 4.91 billion to US$ 5.11 billion in 2018," said Minister of Industry Airlangga Hartarto during a working visit at PT KMK Global Sports in Cikupa, Tengerang, Banten, Friday (3/15).
The Minister of Industry explained, the footwear industry was being prioritized because of its development as an export-oriented labor-intensive sector. Airlangga is optimistic that there will be an increase in exports of national footwear products to US$ 6.5 billion in 2019 and to US$ 10 billion in the next four years.
In order for the industry to actively carry out research and development activities for innovation and be involved in vocational education and training programs, the government will facilitate through the provision of fiscal incentives in the form of super deductible tax.
CEO of PT. KMK Global Sports, C.K Song said, until now the company has absorbed a workforce of 15,655 people. The company which has 30 production lines is able to produce up to 1.2 million pairs of Nike brand sports shoes and 300 thousand pairs of Converse shoes every month. All products are exported to various countries. Its production continues to increase, in 2017 it reached 18.7 million pairs which was equivalent to US$ 234.3 million. (LM)