Learning from Italy, Local Leather Industry Prepared for Global Market

Husen Miftahudin    •    Selasa, 08 Sep 2015 13:18 WIB
indonesian products
Learning from Italy, Local Leather Industry Prepared for Global Market
Local leather industry. (Photo: ANTARA FOTO/Aditya Pradana Putra)

Metrotvnews.com, Milan: Minister of Industry Saleh Husin conducted a technical agreement with the Italian government for a cooperation in the leather and textile sectors. It is realized to develop the leather, shoes and textile industries in Indonesia.

"I hope through the signing of this technical agreement, the association and Italian business people may follow up with investing their capitals in the Indonesian leather, shoes and textiles industries," said Saleh in his written statement, from Milan, Tuesday (9/8/2015).

According to Saleh, the cooperation with Italy was due to the country being successfully developing leather, shoes and textile business from small, middle to large scales. In Italy, the leather based industry is mostly on Vigenano, Tuscany and Marches.

He explained that in Indonesia alone, the three industries are the heavy duty, capital and technology filled sectors. Therefore, the development is hoped to be able to play the important part in the development of national trade performance and providing welfare to its doers, especially from the Small-Middle Industries (IKM).

So far, Saleh continued, national leather product has been marketed to various main export destinations such as the United States of America, Belgium, Germany, England and Japan. The number of leather producer companies has reached 67 companies, with the installed capacity of of 250 million square feet with the utilization level of 48 percent and 7,230 workforce.

Meanwhile, the national shoes industry at the moment comprised of 394 companies, with the investment of Rp11.3 trillion in 2014, as it absorbed the workforce of around 643,000 people. The industry continues to rise, as in 2014 the value of the national shoes production export had reached US$4.11 billion, or rose by 6.44 percent from the previous year, at US$3.86 billion.

The textile sector and Indonesian textile products have also played a great role on submitting the foreign exchange and national clothing supplier. The heavy duty industry has also absorbed 10.6 percent out of the total manufacturing industry.

"The cooperation is also our opportunity in learning, conducting dialogs and in the future attract investments from Italy, as they succeeded in developing the leather based industry and business," Saleh concluded.