Indonesia’s earnings from exports of leather, finished leather goods, and footwear increased by 41 per cent in June 2022 compared to the same period in the previous year.

There has been a diversion of orders from several global brands to Indonesia. Utilities of the leather industry, leather goods, and footwear industries also increased to 84 percent in July 2022. Utilities before the pandemic were around 80 percent.

Indonesia holds exhibitions of footwear, leather, and finished leather products. These are a means of product introduction and a bridge between business actors and between business actors and consumers. The goal is to increase inter-industry linkages between national footwear manufacturers and domestic leather producers as well as efforts to make the import substitution program a success and strengthen the supply chain between upstream and downstream sectors of the domestic shoe industry.

Exports of shoes from Indonesia grew 28 percent in 2021. Indonesia is the sixth largest footwear exporter in the world. Indonesia believes the Regional Comprehensive Economic Partnership (RCEP) will open up opportunities to increase exports of footwear. The country’s shoe exports to RCEP countries reached 29 percent of total exports in 2020 followed by the United States at around 27 percent.