Indonesia's leather, leather goods, and footwear industry export performance weakened at the beginning of 2023.
According to the Central Statistics Agency (BPS), throughout the first quarter of 2023, the industry recorded exports of approximately 95,000 tons, a decrease of 18.77% compared to the first quarter of 2022.
In the same period, the export value also fell by 16.97% to USD 1.94 billion, as shown in the graph above.
However, when broken down by industry subcategories, this performance decline was not uniform.
In the first quarter of 2023, the largest decline in export volume occurred in the tanned leather industry (-29.91%) and sports shoes (-29.09%).
Smaller declines were experienced by the leather and imitation leather goods industry (-10.85%), and everyday footwear (-6.82%).
Meanwhile, the export volume of industrial or field work boots increased significantly (+27.42%), although it was not strong enough to boost the overall performance of the industry group.
The weakening export performance of the leather and footwear industry appears to have triggered a wave of layoffs (PHK) in several factories.
One example is the Puma shoe manufacturer, PT Horn Ming Indonesia. At the beginning of June 2023, this company reportedly laid off 600 employees.
Previously, in May 2023, PT Panarub Industry, an Adidas shoe manufacturer, also reportedly laid off 1,400 employees.
The Expert Staff for Domestic Industry Strengthening at the Ministry of Industry, Ignatius Warsito, predicts that the trend of layoffs in the footwear industry will continue until 2024.
"Yes, (layoffs in the footwear industry) will continue until next year, because the global supply chain situation has not yet recovered," said Ignatius, as reported by *[Katadata.co.id](https://katadata.co.id/tiakomalasari/berita/648826c60bf77/badai-phk-industri-alas-kaki-diprediksi-berlangsung-hingga-2024)*, Tuesday (13/6/2023).