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Document 4 of 320.

October 02, 1998

SECTION: Nationwide Financial News

LENGTH: 247 words

HEADLINE: INDONESIAN SHOE EXPORTS FALL 38 PCT FROM JAN TO MAY

DATELINE: JAKARTA, Oct 2

BODY:

Although prices of made-in-Indonesia shoes are 3 to 15 per cent cheaper than those of China, the flow of those products declined by 38 per cent between January and May this year because of problems with trade financing.

Data from the Footwear Distribution and Retail Association (FDRA) suggests that shoes from Indonesia are cheaper for the same quality.

"Compared with before the rupiah depreciation, our products are very competitive. However, we are very concerned because the export dropped due to unstable socio-political conditions and the trade financing problems had not been solved," said Chairman of Association of Indonesian Shoe Companies (Aprisindo) Anton J Supit following a meeting with Minister for Industry and Trade Rahardi Ramelan together with FDRA's President Peter T Mangione here recently.

Anton revealed that during the January-May period shoe exports totalled only $ US520 million, or a drop of 38 per cent compared with the same period of last year.

Indonesia's shoe exports to the US declined by 14 per cent resulting from the lack of trust on the part of US buyers in the guarantee for shoe supplies.

"FRDA visited 15 shoe factories in various regions to study the process of production. We hoped that FRDA could encourage buyers in the US to increase shoe orders,"he said.

The US market potential is very big. According to FRDA, the shoe retail market in the US reaches $ US40 billion per year.

(ANTARA)

LANGUAGE: ENGLISH

LOAD-DATE: October 2, 1998