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Authored by Covington & Burling’s Employee Benefits & Executive Compensation practice this blog covers ERISA, tax-qualified plan and pension policy law matters.

We are executive compensation consulting and pay consultants with expertise in board compensation, CEO pay, corporate compensation, director pay and pay governance.

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Chris LoCurto's insights on leadership, business, Strategic Planning and life.

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NACD Directorship Magazine is the leading source of boardroom intelligence and corporate governance information for board directors of publicly listed companies globally. We regularly report news, research, and thought leader opinion on such topics as CEO compensation, succession planning, board evaluations, audit committee practices, capital markets, risk management, strategy, and compliance and regulation.

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The Footwear industry in Indonesia grows along the line with the development of the Indonesian economy in general since the early seventies. It grow steadily year by year , but as a group of manufacturers they are still not a cohesive sector , and from scale perspective only a few are known nationally , only big name like the Bata shoe company that operates in Indonesia for decades. However since the early eighties the footwear industry in Indonesia grows rapidly with the influx of foreign investment which produced footwear for the foreign market. This development was also enhanced by the government’s business friendly policy and a stable economic and political condition. This development was also accelerated by the expansion of supporting industries , which resulted in more cost efficient production and a timely production time. This rapid development need a better management , and a new approach from policy makers was adopted . In the year 1988, the Ministry of Industry assembled shoe manufacturers from Jabotabek area , West Java , Central Java and encouraged the formation of the Indonesian Footwear Association or Asosiasi Persepatuan Indonesia known as APRISINDO . The shoe manufacturers and the Ministry of Industry envisioned this organization as vehicle to maintain the development of the shoe industry in all its aspect. The growth of shoe industry in that period was mainly dominated by factories producing brand names like Nike , Adidas , Reebok and others for export . The growth of shoe manufacturing was reflected in the steadily increasing annual export value and footwear is one of the ten main commodities exported from Indonesia and footwear export is one of the main contributor to Indonesian foreign exchange earnings. At the pinnacle of its growth in 1996 , the footwear industry employed 850.000 direct and supporting workers . At he time the export value reached its height of US$ 2,2 billion. However against this bright atmosphere a dark cloud of a financial typhoon is looming and fast approaching . The financial crisis of 1997 struck mercilessly on the economy and especially the banking sector . A multitude of problems plagued the Indonesian economy and with it came the political turmoil and instability in economic and social condition . The shoe industry also engulfed in the crises and had to face a host of problem , all the mainstays for the survival of a shoe industry are in disarray Supporting industries relocate their operations abroad to a more conducive environment. This made production more costly and timing of supply of raw material critical. Banking industry in a chaotic condition and cannot support the shoe industry , to overcame this problem the government seek to make an agreement in Export Financing with the Japanese Government and the USA , however due to unexpected events these scheme did not materialize. During all these uncertain times APRISINDO did its best to support its member to survive the storm . Starting 2000 the storm abated and a revival of the shoe industry is in sight . Another aspect came into view in the euphoria following the fall of the old regime and political liberalization a host of labor unions sprung up with their own political agenda and view of labor and human rights. New Labor law the famous Law No. 13 /2003 was enacted , which add another obstacle due to the costly termination pay. As the footwear industry steadily inching forward , APRISINDO broaden its role in supporting the whole spectrum of the footwear industry The future of the organization , in addition to the prevailing role the organization is developing its focus on a broader issue : • Maintaining growing existence of the shoe industry and enhancing its ability to compete in the global market. • Encouraging the development of non sport and SME footwear industry . • Reinforcing the consolidation of footwear supporting industries . The role of the association is steadily gaining recognition by all stake holders in the footwear industry , as reflected in the involvement of the association in footwear matters. Executive Board in its two decades history are : Year Chairman Secretary General 1991-1994 F.Welirang Zainir Umar 1994-1997 Drs. Frans Hendrawan Eddy Widjanarko 1997-2000 Anton J. Supit Djimanto 2000-2003 Anton J.Supit Djimanto 2003-2006 Drs. Harijanto Yudhi Komarudin SE,MBA 2006-2009 Eddy Widjanarko Elmore Simorangkir/Binsar Marpaung 2009-2012 Eddy Widjanarko Binsar Marpaung SH.MH

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