The impact of global crisis is affect to the shoes producer this year. About 25 shoes investors, both domestic and foreign, decided to delay their expansion plans. The total pending investment reached 700 million U.S. dollars.
Most of the investors said the expansion will continue until economic conditions improved. "For time being most of the investors hold to expand. Even if there is still some investors to build up the new factory, the implementation is very slowly not as originally planned. In fact, there is also a possibility to cancel," said Chairman of the Indonesian Footwear Association (Aprisindo) Eddy Widjanarko, Wednesday (21/0 1/2009).
The shoe industrialists are also concerned at the decline in export orders of second-quarter 2009. For the beginning of this year, they only get a new order for three months. Meanwhile, for the next three month, for example, buyers from America, requested a delay order until the United States President Barack Obama is giving a economy stimulus for the country. The decline in the export, is contradry with the achievement of footwear exports in January 2008 to October 2008 which increased 15 percent compared to the same period in 2007. "Appropriate the targert of shoes export in 2008 1.8 billion U.S. dollars achieved, but we still wait and see," as said by Eddy Widjanarko.
Based on data obtained from the Investment Coordinating Board (BKPM), the companies that invest in the footwear sector are derived from China, South Korea, and Taiwan. The PMA (Foreign Investor) who obtain principles permission, PT Bu Kyung Indonesia (South Korea PMA) with a value of investment 10 million U.S. dollars of which had realization the new factory with a capacity of 3.5 million pairs of shoes per year. PT Shoe Link Shoes Indonesia is planning to build a new factory worth 3.5 million U.S. dollars with a capacity of 3 million pairs per year. PT Ka Yuen Indonesia planning to build a new factory 2.9 million U.S. dollars with production capacity 12.2 million pairs per year.
While the company's shoes PMDN (Domestic Investor) who plan to build a new factory in this year is PT Simko Prima Mandiri with a value of Rp 22 billion investment. The new factory with a planned production of 3 million pairs per year.
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