Encouraging Supply Chain Integration in the Textile and Textile Products (TPT) and Footwear Industries, the Government Prepares Various Policies

Thepresidentpost.id - Jakarta, March 22nd, 2023- Despite facing tough challenges and the threat of recession, the Indonesian economy grew positively by 5.31% (yoy) in 2022.

One sector that has become a catalyst in driving national economic performance is the Textile and Textile Products (TPT) and Footwear industrial sector.

In 2022, the TPT trade balance performance experienced a surplus of USD 3.71 billion, an increase of 3.34% compared to the previous period. Likewise, footwear, experienced a surplus of USD1.03 billion, an increase of 41% compared to the previous period. The United States and Europe are still the main export destinations for these two industries.

Indonesia itself has the potential to become the main market, production base, and export center for the world's TPT and footwear industries with many advantages. Indonesia is a country with the 16th largest economy in the world, has a very small chance of a recession of 3% in 2023, has a very large domestic market with a population of 273 million, a significantly increased demographic bonus, and relatively stable political and economic conditions.

Representing the Coordinating Minister for Economic Affairs Airlangga Hartarto, Deputy for Coordination of Commerce and Industry Ali Murtopo Simbolon gave a speech regarding the Government’s support through various policies as an effort to attract foreign investment and improve the business climate in Indonesia through trade agreements at the Adidas Global Partner Summit, Tuesday (21 /03).

Adidas Indonesia is one of the largest contributors to the export of the TPT and footwear industries and has realized exports in 2022 worth USD 2.54 billion. Moreover, exports to European countries reached USD 826.6 million, or equivalent to 33% of its total exports.

High competitiveness is the key to achieving optimal export performance. Nevertheless, the importation of raw materials is an inseparable part. The challenge of supply chain integration is very important to be resolved immediately.

"The implementation of the Adidas Global Partner Summit is the right momentum in realizing a more competitive upstream and downstream integration of the Indonesian TPT and footwear industries. For this reason, I invite all principals and top executives of Adidas Group partners who are present today not to hesitate and immediately invest in filling the vacant Adidas Indonesia supply chain so that Indonesia can move as a main market, production base, and export center for the world's TPT and footwear industries," said Deputy Ali.

The Adidas Global Partner Summit is the highlight of executive meetings with Adidas partner companies and potential investors who will invest in Indonesia. The event took place on March 21, 2023, and was attended by Adidas CEO Bjorn Gulden and Adidas COO Martin Shankland.