Bu Kyung steps out with first shoe exports

The Jakarta Post, Jakarta

Footwear manufacturer PT Bu Kyung Indonesia, the local unit of a South Korea-based group, sent its first export shipment Friday to the U.S. from the new US$10 million factory it recently built in Karawang, West Java.

The shipment of 40,000 pairs of sports shoes worth some $480,000 represents renewed hope for an industry recently hit for six by the collapse of three footwear manufacturers located in Greater Jakarta, said Bu Kyung president director Dong Kwang Kim.

Kim said the company was upbeat about the prospects for the industry. "Indonesia remains a good target for investment, and we are very optimistic that our business will succeed," he said.

In addition to what he said was the country's improving investment climate, Kim expressed the hope that his company would be able to grow and expand through hard work and innovative management, as well as high-quality workers.

The company, which employs more than 1,000 local workers, has targeted the production of 300,000 pairs of Heelys-brand sports shoes per month, with the U.S. being the sole market destination.

Ansari Bukhari, the Industry Ministry's director general of machinery, metal and textile industries, who was also present at the ceremony, said that footwear exports were expected to hit $1.8 billion this year, compared with $1.4 billion in 2005.

"The presence of this new investor in the industry will hopefully boost its export capacity, which is not only good for our forex income, but also for job creation since the shoe industry is a labor-intensive one," he said.

Nationwide, there are nearly 350 footwear manufacturers with a production capacity of 1.1 million pairs per year and annual investment of Rp 2.15 trillion.