NINE shoe producers from China have relocated factories to East Java at a total investment of up to US$80 million, a local industry executive says.
Indonesian Footwear Association chairman Eddy Widjanarko said that the relocations are to avoid new antidumping duties imposed by the European Union on footwear products from China and Vietnam.
He told reporters Thursday that the new investments would create at least 20,000 new jobs. Widjanarko said that 15 other foreign investors will visit Indonesia in July to search for potential business partners.
The European Union imposed an anti-dumping duty of 25 percent on China and Vietnam-made products in May. The director for miscellaneous industries of Indonesias Industry Ministry, Nugraha Sukmajaya, said that foreign companies had chosen Indonesia for the relocation of their factories as, in contrast to the anti-dumping duties imposed on China and Vietnam, the EU had relaxed tariff barriers on Indonesian-made footwear products. The import duty was recently cut to 14 percent from 17 percent.
He said that the arrival of the Chinese investors will help increase the countrys footwear exports. The Indonesian Government is targeting a 20 percent increase in the value of footwear exports this year to US$2 billion from US$1.5 billion last year.
Indonesian Footwear Association chairman Eddy Widjanarko said that the relocations are to avoid new antidumping duties imposed by the European Union on footwear products from China and Vietnam.
He told reporters Thursday that the new investments would create at least 20,000 new jobs. Widjanarko said that 15 other foreign investors will visit Indonesia in July to search for potential business partners.
The European Union imposed an anti-dumping duty of 25 percent on China and Vietnam-made products in May. The director for miscellaneous industries of Indonesias Industry Ministry, Nugraha Sukmajaya, said that foreign companies had chosen Indonesia for the relocation of their factories as, in contrast to the anti-dumping duties imposed on China and Vietnam, the EU had relaxed tariff barriers on Indonesian-made footwear products. The import duty was recently cut to 14 percent from 17 percent.
He said that the arrival of the Chinese investors will help increase the countrys footwear exports. The Indonesian Government is targeting a 20 percent increase in the value of footwear exports this year to US$2 billion from US$1.5 billion last year.
