David Chalik, Chairman of the Indonesian Footwear Entrepreneurs Association (HIPAN), stated that the Indonesian footwear industry is preparing for a potential increase in imports from the United States (US) following Indonesia's commitment to accept more US products. Although the initial commitment is limited to certain goods, David is concerned that this could open the door to more products, including well-known brand footwear, clothing, and electronics, which are already popular in the domestic market. He believes that the government's support for local producers is crucial in helping them compete on price and quality if US imports increase. This could take the form of facilitating the import of production components or developing a machinery industry. He also highlighted the benefits of Indonesia's 19% additional tariff, the lowest in Asia, providing an opportunity for the domestic footwear industry to expand its export market to the US compared to other countries such as China and Vietnam. Anticipating "Hitchhiking Factories" and Foreign Competition David also voiced concerns about the potential entry of foreign factories into Indonesia to take advantage of low export tariffs to the US. He emphasized that the government should not allow foreign countries to establish factories and sell products labeled "made in Indonesia," especially since the domestic footwear industry is already struggling to compete with Chinese companies opening factories in Indonesia. While these factories create jobs, they remain a significant challenge for the local industry. (ICE GIACARTA)

Fonte notizia: The Jakarta Post - Thursday, July 17, 2025