INDONESIA: Shoe Makers May Benefit From China Dispute
Indonesia's government is appealing to branded footwear manufacturers who decide to move away from China to select Indonesia as a production base.
Ongoing tensions between China and its western trading partners may cause companies to look elsewhere for manufacturing locations, and the Indonesian government hopes to present the country as a lower-cost alternative.
The Jakarta post reported Minister of Trade Mari Pangestu as saying that key US and EU producers are now considering multiple bases, and that if footwear makers transferred to production to Indonesia, then non-branded shoe manufacturers were likely to do the same.
Mari said that the government would publicise improvements made to the Indonesia's labour and taxation services, as well as its infrastructure, which have all hampered the countries' attraction to companies in the past.
Indonesian Footwear Association (Aprisindo) has also voiced optimism that Indonesia will be able to profit from the row over China's cheap exports.
Aprisindo has also reported that six Chinese shoe-makers have decided to shift production there early in 2006, bringing with them 25,000 new jobs.
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