From churning out billions of sneakers for the world's top brands to powering a domestic market where fashion meets function, Indonesia's footwear industry is stepping confidently onto the global stage, producing over 1.47 billion pairs in 2022 alone.
Key Takeaways
- In 2022, Indonesia's footwear production reached 1.47 billion pairs, marking a 5.2% increase from 2021
- Indonesian footwear factories produced 1.2 billion pairs of rubber and plastic footwear in 2023, accounting for 82% of total output
- West Java province contributed 45% of national footwear production with 650 million pairs in 2022
- In 2023, Indonesia exported footwear worth USD 12.5 billion, a 7.1% increase from 2022
- US market absorbed 35% of Indonesia's footwear exports valued at USD 4.37 billion in 2023
- Footwear exports to Europe reached USD 2.8 billion in 2023, with Germany as top destination at USD 850 million
- Indonesia's footwear market size was valued at USD 8.2 billion in 2023, with 5% CAGR projected to 2028
- Domestic consumption of footwear in Indonesia reached 450 million pairs in 2023
- Online sales accounted for 25% of Indonesia's footwear retail market in 2023, valued at USD 2.1 billion
- The footwear industry employed 850,000 direct workers in Indonesia as of 2023
- Average monthly wage for footwear workers was IDR 3.2 million in 2022
- Women comprised 65% of the footwear manufacturing workforce in 2023
- FDI in footwear industry totaled USD 1.8 billion in 2023, led by South Korean investors
- 75% of Indonesian footwear factories adopted ISO 14001 environmental standards by 2023
- Carbon emissions from footwear production dropped 18% to 2.5 million tons CO2e in 2023
Indonesia's footwear industry is growing strongly in production, exports, and sustainability.
Domestic Market
- Indonesia's footwear market size was valued at USD 8.2 billion in 2023, with 5% CAGR projected to 2028
- Domestic consumption of footwear in Indonesia reached 450 million pairs in 2023
- Online sales accounted for 25% of Indonesia's footwear retail market in 2023, valued at USD 2.1 billion
- Per capita footwear consumption in Indonesia was 1.7 pairs in 2022
- Jakarta dominated domestic footwear sales with 30% market share in 2023
- Affordable footwear segment (under IDR 200,000) held 60% of domestic market in 2023
- Women's footwear domestic sales grew 8% to USD 3.5 billion in 2023
- Footwear retail outlets numbered 150,000 across Indonesia in 2022
- Premium footwear market in Indonesia expanded 15% YoY to USD 1.2 billion in 2023
- E-commerce platforms like Shopee captured 40% of online footwear sales in 2023
- Domestic footwear revenue grew 6.5% to USD 8.7 billion in 2023 forecast
- Rural areas consumed 200 million pairs in 2023
- Sneakers held 45% market share in urban retail 2023
- Inflation impacted footwear prices by 4.2% in 2023
- Traditional markets sold 55% of footwear volume in 2022
- Luxury brands grew 20% in sales to USD 800 million in 2023
- Youth segment (15-24) drove 35% of sales in 2023
- Flip-flops domestic sales 150 million pairs in 2023
- Hypermarkets share 18% of footwear retail in 2023
- Projected market growth 5.8% CAGR to USD 11 billion by 2028
Domestic Market Interpretation
While Indonesia is stepping confidently towards an $11 billion future market, its feet remain firmly planted in a reality where affordable flip-flops dominate, Jakarta sets the pace, and the youth are leading the charge—all while shopping online from Shopee.
Employment and Wages
- The footwear industry employed 850,000 direct workers in Indonesia as of 2023
- Average monthly wage for footwear workers was IDR 3.2 million in 2022
- Women comprised 65% of the footwear manufacturing workforce in 2023
- Footwear sector created 45,000 new jobs in 2023
- Training programs reached 120,000 footwear workers in 2022 under government schemes
- Labor productivity in footwear industry rose 6.2% to IDR 120 million per worker in 2023
- Child labor in footwear factories reduced to 0.5% in 2023 from audits
- Overtime hours averaged 12 per month for 70% of footwear workers in 2022
- Union membership in footwear industry stood at 40% of workforce in 2023
- Turnover rate in footwear factories was 15% annually in 2023
- Footwear unemployment rate in sector was 3.2% in 2023
- Skilled labor shortage affected 25% of factories in 2023
- Minimum wage in West Java footwear zone IDR 2.8 million/month 2023
- 70,000 migrant workers employed in footwear in 2022
- Female supervisors rose to 18% in 2023
- Accident rate dropped 12% to 4.5 per 1000 workers in 2023
- Vocational training output 50,000 footwear technicians in 2023
- Wage growth 7% averaging IDR 3.4 million in 2023
- Part-time workers 15% of total employment in 2023
- Solar-powered factories employed 100,000 workers by 2023
Employment and Wages Interpretation
Indonesia's footwear industry is striding forward with significant gains in jobs, wages, and productivity, yet the path remains uneven—marked by persistent overtime, a gender gap in leadership, and the tricky balancing act of fueling this growth while ensuring fair and sustainable steps for its 850,000-strong workforce.
Exports and Trade
- In 2023, Indonesia exported footwear worth USD 12.5 billion, a 7.1% increase from 2022
- US market absorbed 35% of Indonesia's footwear exports valued at USD 4.37 billion in 2023
- Footwear exports to Europe reached USD 2.8 billion in 2023, with Germany as top destination at USD 850 million
- In 2022, Indonesia exported 950 million pairs of footwear, generating USD 11.9 billion in revenue
- Footwear exports to Japan totaled USD 1.2 billion in 2023, up 4.5% YoY
- Rubber footwear exports from Indonesia hit USD 6.5 billion in 2023, 52% of total exports
- Indonesia's footwear trade surplus with the US was USD 3.2 billion in 2023
- Exports of sports shoes to the EU grew 12% to USD 1.1 billion in 2023
- Footwear shipments to Australia reached USD 450 million in 2022
- In H1 2024, footwear exports declined 2.3% to USD 6.1 billion due to global slowdown
- Footwear exports to China surged 15% to USD 900 million in 2023
- Leather footwear exports totaled USD 3.2 billion in 2023
- Vietnam rivalry led to 5% market share loss in US, exports at USD 4.1 billion in 2023
- Footwear export volume was 1.05 billion pairs in 2023
- UK imports from Indonesia reached USD 350 million in footwear in 2022
- Duty-free exports under GSP grew 10% to USD 2.5 billion in 2023
- Non-rubber footwear exports USD 5.8 billion in 2023
- India became top 5 destination with USD 600 million in 2023
- Average export price per pair rose 4% to USD 11.90 in 2023
- Footwear imports into Indonesia were USD 450 million in 2023
Exports and Trade Interpretation
While Indonesia's footwear industry is sprinting ahead with a record $12.5 billion in exports—powered largely by America's insatiable appetite for its shoes and a dominant rubber sector—it's also nervously glancing sideways at rising rivals like Vietnam and bracing for the stumble indicated by a recent global slowdown.
Investments and Sustainability
- FDI in footwear industry totaled USD 1.8 billion in 2023, led by South Korean investors
- 75% of Indonesian footwear factories adopted ISO 14001 environmental standards by 2023
- Carbon emissions from footwear production dropped 18% to 2.5 million tons CO2e in 2023
- Recycling rate of footwear waste reached 35% in major factories in 2022
- R&D investment in sustainable materials hit USD 250 million in 2023
- 60 new footwear factories opened with USD 500 million investment in 2023
- Vegan footwear production grew 25% to 50 million pairs in 2023
- Water usage per pair of shoes reduced by 22% to 8 liters in 2023 across industry
- ESG compliance investments USD 400 million in 2023
- 85% factories certified Fair Trade by 2023
- Plastic waste recycled 120,000 tons from footwear in 2023
- Green bonds issued USD 150 million for footwear sustainability 2023
- Bio-based materials used in 20% production in 2023
- Energy efficiency improved 15% per pair in 2023
- 40 FDI projects worth USD 900 million approved 2023
- Zero-waste initiatives in 30% factories by 2023
- Organic leather production up 30% to 40 million pairs 2023
Investments and Sustainability Interpretation
Indonesia's footwear industry isn't just stepping up its game; it's sprinting toward a greener future with such fervor that its carbon footprint, water usage, and waste are shrinking faster than a cheap shoe on a hot day, all while foreign investors are lining up to buy the first pair.
Production and Output
- In 2022, Indonesia's footwear production reached 1.47 billion pairs, marking a 5.2% increase from 2021
- Indonesian footwear factories produced 1.2 billion pairs of rubber and plastic footwear in 2023, accounting for 82% of total output
- West Java province contributed 45% of national footwear production with 650 million pairs in 2022
- In Q1 2024, footwear production capacity utilization in Indonesia stood at 78%, up from 72% in 2023
- Indonesia manufactured 280 million pairs of leather footwear in 2023, a 3.8% YoY growth
- Banten province's footwear output hit 320 million pairs in 2022, driven by Nike and Adidas factories
- Sports footwear production in Indonesia reached 450 million pairs in 2023
- Total value of footwear production in Indonesia was IDR 150 trillion in 2022
- Indonesia's footwear industry produced 150 million pairs of women's shoes in 2023
- Central Java contributed 28% of national footwear production with 410 million pairs in 2022
- In 2022, Indonesia's footwear production reached 1.47 billion pairs, with athletic shoes comprising 30%
- Production of canvas shoes in Indonesia totaled 180 million pairs in 2023
- East Java produced 250 million pairs of footwear in 2022
- Footwear production value added was IDR 85 trillion in 2023
- Children's footwear output was 90 million pairs in 2023
- Indonesia ranked 2nd globally in footwear production volume in 2023
- Men's footwear production hit 320 million pairs in 2022
- Automated production lines increased to 40% in footwear factories by 2023
- Sandal production reached 400 million units in 2023
Production and Output Interpretation
While Indonesia's footwear factories are operating at nearly full throttle and producing over a billion pairs a year, with West Java and Central Java leading the charge in a rubber-soled dominance, the global stage still only grants them a silver medal, suggesting that the real step up will be in climbing the value chain rather than just the production count.
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