Footwear manufacturer PT Fortune Mate Indonesia on Tuesday reported a first half net loss of Rp11.9 billion ($1.3 million) compared to a net profit of Rp18.5 billion ($2m) in the year-ago period last year.

The company, which exports around 95 per cent of its production, blamed its fading fortunes on currency changes and a slump in sales to the US - its main market - following the September 11 airline attacks.

It added the US market is currently flooded with cheap shoe imports from rival footwear producing nations in Asia such as India and China.