The Ministry of Trade made a breakthrough in the form of a stimulus for export regulations for footwear products. These various policy stimuli provide convenience for national footwear exporters.
The Director General of National Export Development (PEN), the Ministry of Trade, Didi Sumadi, revealed that the government has carried out several stimuli to boost the national economy. In addition, some of them can have a positive impact on Indonesia's non-oil and gas export activities.
"We hope that the stimulus provided by the government can be utilized by business actors more optimally," said Didi.
The government, Didi continued, has also issued a stimulus in the form of a series of policy programs to increase industrial competitiveness, people's purchasing power, investment, logistics, exports, and tourism, especially during the Covid-19 pandemic.
Some of these programs include simplifying export procedures and accelerating the issuance of business licenses from the central to regional levels.
In addition, it also identifies obstacles in the field, as well as a place to share success tips with fellow exporters and other stakeholders. This is to improve market access for small and medium enterprises (SMEs).
On the other hand, the Ministry of Industry also initiated the formation of the Indonesia Footwear Network (IFN) as a networking platform for the footwear industry players and their supporters. This effort aims to arouse the enthusiasm of the shoe industry players in Indonesia amid the impact of the Covid-19 pandemic.
The Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry, Gati Wibawaningsih revealed that the IFN platform is a showcase that displays information on business actors consisting of brands, suppliers, and manufacturers so that it can be accessed by all business actors in the footwear and leather products sector. .
This is because the current pandemic and adaptation of new habits are a challenge for domestic industry players, including the small and medium industry (IKM) sector. They are required to be more creative and innovative to maintain their business.
“So, so that business actors can take advantage of current market conditions, one way is to build a network between business people. So, they will get opportunities to work together and improve their personal self-image to company branding," said Gati.
Gati said, with the collect – connect – collaboration concept, IFN collects data from footwear industry players through a website-based online storefront to facilitate the collection and search for information and profiles of various footwear industry businesses from the upstream to downstream sectors.
The IFN platform can also provide the widest possible access to fellow footwear industry players and the general public who are interested and interested in developing the footwear industry. In fact, it opens up opportunities for collaboration between business actors and the general public, thus providing a mutually beneficial positive impact.
"If you join the IFN platform, the benefits you get are various benefits and conveniences from the Indonesian Footwear Industry Development Center (BPIPI), including information about the profiles of producers, suppliers, local footwear brands that can be accessed by potential buyers, investors and traders online. online,” said Gati.
According to Gati, another advantage is the periodic promotion of IFN profiles on social media platforms such as Instagram, Facebook, and YouTube. "BPIPI will create a media campaign for the footwear industry players in Indonesia, including those who are members of the IFN," added Gati.
Furthermore, Gati revealed, during this pandemic there was a considerable change in the performance of the footwear industry. This is based on data from the World Footwear Business Condition Survey – First Semester 2020, in the survey results for the period January to April 2020, world footwear consumption decreased by 22.5% and global sales performance fell by 74%.
In addition, people's purchasing power fell by 53% and the price of goods fell by 43%. “Nevertheless, the impact on the footwear production line, especially sneakers, actually increased by 42%. This is due to the raw materials for making sneakers, which are generally made from textiles and rubber, and sneaker manufacturers already have an online marketing platform,” said Gati.
Based on data from the Ministry of Trade, the export performance of footwear products in 2020 was recorded at USD 4.80 billion or grew 8.97 percent compared to the previous year, which was USD 4.41 billion. Exports of these commodities accounted for 3.4 percent of Indonesia's total non-oil and gas exports.
Then, based on records, the 2019 World Footwear Yearbook, Indonesia is the fourth largest footwear production center in the world with a total production of 1,271 million pairs of footwear. Indonesia is also the third largest exporter of footwear products in the world, with a total of 406 million pairs of footwear.