Indonesia is strengthening its position as one of Asean’s leading manufacturing economies, with its leather industry serving as a critical link in a broader industrial ecosystem spanning footwear, leather goods, furniture, automotive production and apparel.
The country’s tanning sector ranks among the top three in Asean, processing an estimated 8-10 million hides and skins each year. With exports valued at between US$1.2 billion and US$1.5 billion annually, the industry provides essential materials for a range of export-oriented manufacturing sectors.
Footwear remains one of Indonesia’s strongest manufacturing segments. Ranked second in Asean, the country produces around 700 million to 800 million pairs of shoes per year and generated footwear exports worth US$5.16 billion in 2024. The sector benefits from a mix of international OEM production and established domestic brands.
Indonesia has also built a substantial leather goods industry, with exports of bags, belts and gloves valued at an estimated US$2.5-3 billion annually. The country is similarly a major player in furniture and upholstery manufacturing, exporting between US$1.8-2 billion of products each year.
Beyond traditional leather applications, Indonesia’s automotive industry produces approximately 1.4-1.5 million vehicles annually and contributes US$6-6.5 billion in exports, highlighting the importance of leather and upholstery materials within regional supply chains.
The country’s garments and lifestyle products sector adds a further US$8 billion to US$9 billion in annual exports, supported by growing demand for functional and sustainable materials.
Taken together, the figures illustrate how Indonesia’s leather industry underpins a diverse manufacturing base, reinforcing the country’s role as a strategic production hub within the Asean region.
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