Indonesia: state funding for footwear companies
06/07/2009
Nine footwear manufacturers in Indonesia have qualified for state aid. Under the arrangement, they will be able to invest in new footwear machinery and receive 10% of the cost from the government in Jakarta.
The government has said it wants to help Indonesian manufacturing firms increase efficiency and productivity and has made more than $5 million available in funding. It has said specifically that the country’s footwear industry should feature in the aid programme because most of the machinery now in use in shoe factories across the country is old.
The Indonesian Footwear Manufacturers Association (Aprisindo) has commented that the amount of investment companies have to provide themselves makes it difficult for many firms to take advantage of the government’s offer. It said only 15 companies had applied so far, whereas the government had set a target of helping 30 footwear manufacturing companies.
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