Trade and Investment Bulletin Volume IV, January 2017 | Page 7

Number I | September 2016 is expected to rise slightly to 2.3 percent of GDP in 2017 from 1.9 percent of GDP in 2016 ).
Other structural weaknesses of Indonesia include a low average per capita GDP ( at USD $ 3,576 compared with the ' BBB ' range median of USD $ 9,188 ), while governance continues to be weak ( illustrated by a low score for the World
Bank ' s governance indicator at 41st percentile versus the ' BBB ' median of 58th percentile ), and Transparency International ' s corruption index ( 88th of 168 ).
Meanwhile , the issue ratings on Indonesia ' s senior unsecured foreign- and local-currency bonds and foreigncurrency Sukuk ( Islamic bonds ) - issued
through Publisher Company SBSN Indonesia II and III - have also been affirmed at ' BBB- ' by Fitch Ratings . Indonesia ' s Country Ceiling was affirmed at ' BBB ' and the short-term foreign- and local-currency Issuer Default Ratings at ' F3 ', while the senior unsecured shortterm issues were also affirmed at ' F3 '.
( Source : Indonesia Investments )
Credit Rating Indonesia : Standard & Poor ' s Fitch Ratings Moody ' s
Indonesia
Rating Outlook Rating Outlook Rating Outlook BB + Positive BBB- Positive Baa3 Stable

Indonesia Footwear Industry

The footwear industry is an important industry for Indonesia . It employs millions both directly and indirectly . The industry in recent years is showing a sign of robust growth after a period of intense global competition .
Indonesian firms have a long experience in producing high-quality products . In this era of globalization , Indonesian footwear makers are pushing the limits further to develop footwear with better designs and footwear manufacturing systems that are more efficient .
One can trace Indonesian industry to the early 20th Century . In the 1920s , a number of local workers of a Dutch shoe factory left their jobs to start their own shoe-making businesses . They became the embryo of Cibaduyut shoe industry cluster , with now has grown to around 800 businesses and annual production of 4 million pairs . This area becomes wellknown nationwide for their quality and their competitive pricing .
Another landmark in modern footwear manufacturing in Indonesia was in the 1940s when Bata , a Czech company , set up its factory in what is now known as the Kalibata ( literally , “ Bata stream ” as the locals came to name the neighborhood ) area of Jakarta . Mass footwear manufacturing boom in the country began in the 1970 ’ s . Since then the industry has continued to grow . Not only they produce local brands or custommade footwear ( the way most businesses in Cibaduyut or Mojokerto do ), but also global brands .
There are so many foreign brands that are produced in Indonesia , such as sport shoe giants ( Nike , Reebok , and Adidas ), designer brands ( Benetton , Tommy Hilfiger , and Pierre Cardin ), and many others .
Number IV / January 2017 | Trade & Investment Bulletin 7