Indonesia’s Footwear Industry Rises Again: Foreign Investment Reaches IDR 8 Trillion

According to the Ministry of Industry, from January to May 2025, a total of 12 foreign direct investment (FDI) companies have confirmed plans to invest in Indonesia’s footwear sector.

The total investment is valued at IDR 8 trillion, with an estimated production capacity of:

• 64.6 million pairs of shoes

• 214.6 million pairs of footwear components

This investment is also projected to create over 80,000 jobs, reaffirming the sector's role as a key player in Indonesia’s labor-intensive industry landscape.

Rizky Aditya Wijaya, Director of Textile, Leather, and Footwear Industry at the Ministry, stated that several regions have caught investors’ eyes for factory development, including:

• Majalengka

• Jepara

• Indramayu

• Brebes

These regions are considered strategically viable due to their workforce potential, logistics access, and favorable incentives.

This wave of foreign investment is not just about economic value – it’s a strategic move to restore Indonesia’s role in the global footwear supply chain. With expanded production capacity and broader market reach, Indonesian footwear exports are expected to penetrate new international markets.

This is a golden opportunity for local businesses – from SMEs to supporting service providers (logistics, raw materials, workforce training) – to get involved in this growing ecosystem.
Ensure your business is ready for partnerships, supplying materials, or collaborating with global investors.
The revival of Indonesia’s footwear industry is no longer just a discussion – it is real momentum in motion. With strong government support and increasing investor confidence, Indonesia has a golden chance to strengthen its export position and generate positive social impact through job creation.
Let’s seize this momentum and establish Indonesia as a global hub for footwear manufacturing.

Satra Sinar Abadi Group

Amid global pressures weighing down the footwear industry, positive news arrives in the form of increasing foreign investor interest. The Indonesian government has welcomed new commitments from international companies to build shoe and component factories across the country, bringing trillions in investment and tens of thousands of job opportunities.