During the pandemic there are 2 different conditions. Domestically, there are market closures, people's mobility is limited, economic mobility is also limited, community activities are also limited. As a result, the footwear industry in the domestic segment during 2020 to 2021 experienced a decline both in terms of production and market, including turnover. On the other hand, during the 2020 pandemic, we experienced a brief shock in June-July, then in September we started to recover. Even though September-November there are still some adjustments so there are layoffs, but after that at the end of the year we have fully recovered and closed 2020 with 8.97% growth, yes export growth.

In 2021 we have really recovered and even grew quite rapidly. It grew by 28.3% compared to the previous year with a total of USD6.1 billion.

So during the pandemic there were 2 different conditions, domestic was under pressure because the market was closed, but our exports grew.

Why can it grow? In 2021 we will have the blessing of competing countries implementing policies in our favor. For example, China and Vietnam implement a zero Covid-19 policy, so their activities during the pandemic are very strictly limited while we are quite flexible with PSBB and PPKM. We have the name IOMKI, the operational permit and the mobility of industrial activities. With this permit we get the freedom to produce during the pandemic.

Our industry also takes corporate action with domestic conditions. There is a huge pay gap, with a fairly high increase in wages. Inevitably, when the input continues to rise while the output never increases then there is a point where we become uncompetitive. Finally, some of our manufacturers have moved to areas with more competitive MSEs. For example in Banten. We have a lot of people in Tangerang, Serang, moving to Central Java.

One of the factors is the improvement of infrastructure where there is the Transjawa Toll Road. Not far from Karawang and Purwakarta there are Subang, Majalengka, Cirebon and moving to Central Java there are Brebes, Pekalongan, then Jepara. There are many new factories standing as part of the relocation process in order to reduce the burden on input factors. With these things, in 2021, our exports have grown quite extraordinary, 28.3%.

Does the war between Ukraine and Russia also affect the performance of the shoe industry?
This war resulted in energy and food crises, both of which experienced quite high inflation. The spike in energy and food inflation will affect inflation in general. In the United States (US) is quite high. At the same time, China, as one of the largest export destinations, is still implementing a zero Covid-19 policy in 2022.