Export: What's Inside
Export: What's Inside
export
INDONESIA
What's Inside
Indonesia is endowed with rich natural resources,
including various farm animals that can be exploited,
not only meat but also the skin. Indonesia has long been
known for the kind of leather products and now also
known as a producer of leather products are good.
While the current trend still shows a small amount of
exports, a long tradition in the leather products
industry will certainly encourage Indonesia
to become a major exporter of
leather products.
export
INDONESIA
What's Inside
Indonesia is endowed with rich natural resources,
including various farm animals that can be exploited,
not only meat but also the skin. Indonesia has long been
known for the kind of leather products and now also
known as a producer of leather products are good.
While the current trend still shows a small amount of
exports, a long tradition in the leather products
industry will certainly encourage Indonesia
to become a major exporter of
leather products.
Hot Issue 3
List of Exporters 10
Commercial Attaches 11
hot issue
Indonesian Leather Products
Consumers of leather products always want to brands. Leather products from Indonesia have
get such a quality product that is sold in upscale also experienced growth, both in processing of
markets from well-known brands. For those who raw materials, product quality and design. Leather
have limited budget, it will be difficult to get the jackets have been able to meet the taste, especially
expensive products from luxury brands that many clothing for men and women who are classy, middle-
people desire to have. Producers in developing to-middle class entrepreneurs.
countries make similar products but using local
Indonesian
Leather Products
In The World
An estimated domestic demand for cowhide is come to the manufacturers to buy their products.
20 million pieces per year. Throughout 2013, cow To check the quality of the products, the producer
leather exports reached 1.1 million pieces, 500.000 contacted the buyer, asking whether the bought
pieces of goatskin and sheepskin 450.000 sheets. products had good quality, or whether they were
This condition affects the leather products industry damaged. So far, responses from the buyers always
in the country. It is estimated, the current domestic stated that the leather products were of good the
use of leather for leather products such as shoes, quality.
bags and so on, is only at about 35%. The need will
increase, if the skin export is reduced.
Indonesia has been exporting various products • Bags, strapless or strap handles, plastic or textile
under HS 42 (Articles of leather, animal gut, harness, materials.
travel goods). The export of Indonesian leather • Suitcases of leather, composition leather or
products was increasing from 2009 to 2013. In 2009, patent leather.
Indonesia's export value was US$178,4 million,
• Bag with leather material, composition leather or
exported to 161 countries. In 2010 the export of
patent leather.
leather products in Indonesia increased by 27,58%
to US$246,4 million, in 2011 export value again • Equipment normally carried in the pocket or
increased by 15,65% to US$292,1. million The handbag, of leather, composition leather or
following year, the export value increased again patent leather.
to US$324,6 million, an increase of 10,03%, and
increased by 3,97% in 2013 to US$338,1 million. Leather products are grouped under the HS codes
4202-4205 and 6403-6405. Leather products
In 2013 export destinations of Indonesian leather grouped under HS 4203 include:
products under HS 4202 was dominated by USA at • Leather gloves designed for sports.
32,13% while Italy was second at 11,24%. At the third • Leather gloves, not designed for sport.
place was Netherlands with 7,97% and followed
by Japan (6,75%), Hong Kong (6,33%), Singapore • Apparel, of composition leather or Leather.
(4,44%), Australia (3,57%), Belgium (3,14%), • Belts and bandoliers with or without buckles, of
Germany (2,59%), and United Arab Emirates (2,54%) leather or composition Skin.
to complete the Top 10. • Clothing accessories nesoi, of composition
leather or skin.
Exported leather products which fall under HS 4202 • Clothing Accessories, leather or composition
are: leather.
• Bag, with straps or handles, leather or
composition leather or patent leather.
HS COMMODITY
420221 Handbags, Whether Or Not With Shoulder Strap Or Handles, With Outer Surface Of Leather,
Composition Leather Or Patent Leather
420222 Handbags, Whether Or Not With Shoulder Strap Or Handles, With Outer Surface Of Plastic Sheeting
Or Of Textile Materials
420292 Container Bags, Boxes, Cases And Satchels Nesoi, With Outer Surface Of Plastic Sheeting Or Of Textile
Materials
420229 Handbags, Whether Or Not With Shoulder Strap Or Handles, With Outer Surface Of Materials Nesoi
420212 Trunks, Suitcases, Vanity Cases And Similar Containers, With Outer Surface Of Plastics Or Of Textile
Materials
420211 Trunks, Suitcases, Vanity Cases And Similar Containers, With Outer Surface Of Leather, Composition
Leather Or Of Patent Leather
420299 Container Bags, Boxes, Cases And Satchels Nesoi, With Outer Surface Of Materials Nesoi
420291 Container Bags, Boxes, Cases And Satchels Nesoi, With Outer Surface Of Leather, Composition Leather
Or Patent Leather
420231 Articles Normally Carried In The Pocket Or Handbag, With Outer Surface Of Leather, Composition
Leather Or Patent Leather
420219 Trunks, Suitcases, Vanity Cases And Similar Containers, With Outer Surface Of Materials Other Than
Leather, Plastics Or Textiles
420239 Articles Normally Carried In The Pocket Or Handbag, With Outer Surface Of Materials Nesoi
420232 Articles Normally Carried In The Pocket Or Handbag, With Outer Surface Of Plastic Sheeting Or Of
Textile Materials
Besides exporting leather and leather products, Asian makers of leather products also enjoyed
Indonesia also imported leather products, such as: a positive growth despite the continuing global
financial crisis in 2009. The export of leather products Chinese Taipei followed closely at the 11th place
continued to grow in the period from 2009 to 2013. with a market share of 0,3% and an export value of
In 2013, China was the largest exporter with a US$192,88 million, followed by Bangladesh at 0,1%
market share of 44,5% and an export value of (US$89,38 million), Malaysia with 0,1% (US$56,43
US$30,68 billion, followed by India which had 3,6% million), and Japan at 0,1% (US$46,65 million). Sri
of market share (US$2,51 billion) and Viet Nam at Lanka completed the Top 15 Asian exporters with an
3,3% (US$2,26 billion). At No. 4 was Pakistan which export worth US$32,14 million.
commanded a market share of 1,1% with an export
of US$743,53 million and South Korea was No. 5 World Imports
with 1% (US$657,60 million).
World's import of leather products also showed a
Singapore was at the 6th place among Asian exporters similar increase with world's export. The import in
of leather products with a market share of 0,9% and 2010 worth US$54,71 billion, an increase of 14,50%
a export value of US$631,09 million, followed by when compared to import figure in 2009 of US$46,78
Hong Kong with 0,8% (US$565,86 million), Thailand billion. Imports increased by 15,92% in 2011 with a
at 0,7% (US$466,59 million) and Indonesia at 0,5% value of US$65,07 billion.
(US$338,07 million). The Philippines ranked the 10th
among Asian top exporters with a market share of
0,3% (USD 223,7 million).
Increasing demands by a number of countries, such The second largest supplier of Indonesian import
as USA, South Korea, China and Canada and other was South Korea worth US$20,48 million or 9,3%
country members of the World Trade Organization of total import, while France was the third largest
(WTO), saw the imports increased to 4,07% at supplier with US$13,65 million (6,2%). The fourth
US$67,83 billion in 2012. largest supplier for Indonesian market in 2013 was
Hong Kong with US$12,17 million (5,5%), while
The year 2013 also saw an increased imports Singapore was fifth with US$8,64 million (3,9%).
although the growth was weakened at 2,41% to
US$69,51 billion. Indonesian leather products imported from these
countries are:
Imports from some countries in the same period - Trunks, suit-cases, camera cases, handbags etc.
increased positively from year to year. The United of leather, plastic, textile etc. (HS 4202),
States imported the most in 2013 with a value of - Articles of apparel & clothing access, of leather or
US$13,42 billion for market share of 19,3% followed composition leather (HS 4203),
by Japan for US$5,86 billion (8,4%) and Hong Kong - Articles of leather or composition leather, nesoi.
with US$4,90 billion (7,0%). France was ranked the (HS 4205),
4th with US $ 4,27 billion (6,1 %) and Germany at the - Articles of gut, of goldbeater's skins, of bladders
5th position with US$4,15 billion (6,0%). or of tendons (HS 4206),
- Saddlery and harness for any animal, of any
Meanwhile, in 2013 Indonesia imported leather material (HS 4201),
products worth US$221,25 million for a market - Articles of leather or composition leather for
share of 0,30%, standing at the 38th position. Most technical uses (HS 4204).
of Indonesian imports was supplied by China with
US$137,79 million or 62,3% of Indonesia's total
imports.
Commercial Attaches
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