Up to 25 footwear firms intending to build or expand factories in Indonesia may delay or even cancel their plans because of global financial uncertainties according to local news reports.

Ministers fear up to US$200m worth of new investments which were due to start before the end of this year may be put on hold as credit dries up in international markets and domestic interest rates rise. 

According to The Jakarta Post, most of the investors are South Korean and Taiwanese firms.

Singgih Witarso, secretary general of the Indonesian Footwear Producer Association (Aprisindo) told the newspaper its members' order books are filled until March. After then, he said, "we don't know what's going to happen."

Indonesia's footwear industry has set an export target of $1.9bn this year, up from $1.6bn last year.

It hopes to benefit from the EU's decision to extend anti-dumping duties on leather footwear imported from China and Vietnam.