The Leather and Footwear Industry Recovers, Growing 7.75% in 2021

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Viva Budy Kusnandar 30/03/2022 09:00 WIB

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Indonesia's leather industry, including leather goods and footwear, reached a value of Rp 42.51 trillion in 2021.

Value and Growth of GDP in the Leather, Leather Goods, and Footwear Industry (2010-2021)

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Value and Growth of GDP in the Leather, Leather Goods, and Footwear Industry (2010-2021)

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The leather, leather goods, and footwear industry experienced growth in 2021 after a downturn the previous year due to the Covid-19 pandemic.

The Central Bureau of Statistics (BPS) reported that the Gross Domestic Product (GDP) of the leather, leather goods, and footwear industry at current prices reached Rp42.51 trillion in 2021. This represents 1.44% of the national non-oil and gas manufacturing industry.

Measured at constant prices, the industry grew by 7.75% to Rp28.17 trillion in 2021, compared to a contraction of 8.76% the previous year, as shown in the graph.

The growth of this industrial sector occurred in line with the revival of the domestic and global economies last year.

This is consistent with the narrowing contraction of the community consumption component for clothing, footwear, and maintenance services to 0.06% in 2021, after experiencing a contraction of 4.21% the previous year.

Domestic investment (PMDN) in the leather, leather goods, and footwear industry grew by 77.41% year-on-year to US$700.4 million in 2021.

Foreign investment (PMA) in the industry also surged by 126.87% to US$485.5 million.

Similarly, the export value of the leather, leather goods, and footwear industry grew by 30.97% to US$7.1 billion in 2021, compared to US$5.42 billion the previous year.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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The Leather and Footwear Industry Recovers, Growing 7.75% in 2021

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