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SUMMERY : INDONESIAN LEATHER INDUSTRY 2011

Summery Leather Industry

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SUMMERY :

INDONESIAN LEATHER INDUSTRY2011

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THE MAIN FACTOR SUPPORTING THE PROCESSING INDUSTRY AND

THE SKIN:

The demand for leather raw material requirement for

larger organizations that are very much

Availability of raw materials in the area of skin can cause

the industry to grow and be a livelihood in the area.

Being in the tropics that has low humidity can support theprocessing, especially the drying process

Leather industry is a promising industry if properly

managed.

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EXPORT AND C APACITY 

Skin quality raw materials from Indonesia exported to

many foreign countries. On the other hand, Indonesia is

also still dependent on imported supplies. Restrictions on

exports of leather must be assured first absorptions in the

country

Judging from the character of the leather industry capacity

and leather products industry consists of small, medium

and large industry. Production capacity of SMEs to an

average of 250,000 Sq ft per year, while large industry

average of 20 million Sq ft per year.

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The Association of Indonesian Leather Tannery mention, if 

the supply of raw materials in the domestic leatherindustry are met, an estimated production capacity

cowhide tanned reached 60 million square feet per year.

That the production capacity of 150 million square feet per

year.

While the production capacity of goat and sheep skinstanned only reached 25 million square feet per year from a

total of 100 million square per year. Raw materials are

usually used in the leather craft industry of shoes,

handbags, wallets, and clothes.

Currently, the national sheep population reached 10million tails. Of the total national population, 50% or 5

million head of sheep in West Java.

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Each year, 67 factories and 120 tanneries tannery

industries households in Indonesia shortage of raw

material supply as many as 3 million pieces of cowhide and

15 million pieces of leather goat / sheep.

Currently, there are 67 factories and 120 cottage industrytanneries scattered in DKI Jakarta, West Java, Banten,

Central Java, Yogyakarta, East Java and South Sulawesi.

Tanning industry's installed capacity reached 150 million

square feet is equivalent to five million pieces of cowhide

and 100 million pieces of goat skin. Meanwhile, the utility

level reached 40 percent and 20 percent cowhide leather

goat. The industry is able to absorb 6410 workers.

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DEVELOPMENT OF LEATHER AND PRODUCTS COMMODITY 

EXPORTS FROM INDONESIA TO THE SWISS MARKET PERIOD

J AN-JUN2010

Export commodities and leather products from Indonesia to

the Swiss market for the period January to June 2010,

although in terms of price increases is the significance, but

due to the decrease of volume, then its value is also

decreased compared with the same period in 2009.

Indonesia's position in the ranking of 25, far behind

Thailand and Vietnam, each of which are in positions 5 and

12. While the position of the Philippines is ranked 27.

Commodity exports are expected Indonesia leather and its

products to the market Switzerland can still be improved.

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FINISHED LEATHER MARKET IN INDONESIA 

The Indonesian leather industry plays an important role in

the country’s economy. The industry is among the ten

largest export earning industries within the so-called non-

oil and gas sector; it is a labor-intensive undertaking as the

majority of the processing and manufacturing industries

consists of medium and small-scale industries.

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