Indonesia is among the world top six of largest footwear exporters and therefore this sector is an important asset to Indonesia's manufacturing industry (generating foreign exchange earnings and providing employment to many people). Big global players, such as Nike Inc and several companies from China and South Korea, have production facilities in Indonesia as the country's labour costs are low. However, these minimum wages have been growing rapidly in recent years, weakening appeal of investment in the shoe industry.
Another problem is that Indonesia needs to import several raw materials (leather and rubber) for the production of shoes. Despite being a major rubber producer Indonesia still needs to import rubber materials for the manufacturing of shoes as the country lacks domestic processing facilities.
-Qifeng shoe making machine