Taiwan to Relocate Shoe Factories to Indonesia

Tempo Interactive, Wednesday, 07 April, 2010 | 19:06 WIB

TEMPO Interactive, Jakarta: The Chairman of the Board of Supervisors of the Indonesian Shoe Association, Harjanto, has said that there are three Taiwanese companies that plan to relocate their shoe factories from China to Indonesia.

“There is already an investment overheat (in China),” said Harjanto at the Investment Coordinating Board Office yesterday.

The three investors consider that Indonesia’s condition is stable enough.

“There might be a lot of scandals, but businesses keep on operating,” they said.

The three companies that will relocate their factories are: Panaruk Dwikarya, which produces Mizuno and New Balance; PT Cing Lu, which produces Nike and Adidas; and PT Shang Yau Fung with Asic Tiger.

The total investment to relocate the factories amounts to US$200 million up until the end of 2011.

They target that they will produce 20 million pairs of shoes in this time.

Besides factories relocation, Taiwan will expand with several sport shoes brands.

Up until next year, the total investment for sport shoes amounts to US$ 500 million.

Meanwhile the Indonesian Shoe Association is targeting exports of US$ 2 billion this year.

Last year’s export value amounted to US$ 1.8 billion.

“We want to go back to the times before the 1998 financial crisis when exports amounted to US$ 2.4 billion," said an optimistic Harjanto.

ARYANI KRISTANTI