economy

Kemenperin And KONI Are Working Together To Enhance P3DN To Boost The Sports Equipment Industry

The government is committed to boosting the use of domestic products (P3DN) across various sectors to achieve industrial independence. The acceleration of the P3DN program, outlined in Presidential Instruction Number 2 of 2022, is a strategic move aimed at optimizing the productivity of the local industry.

To ensure the successful implementation of the P3DN program, the Ministry of Industry is actively collaborating and synergizing with various stakeholders, including the private sector. One key partnership is with the Indonesian National Sports Committee (KONI) to promote the growth of the sports industry, especially as healthy lifestyle trends rise in society. This aligns with the Ministry's role in the National Sports Grand Design (DBON).

"We see a significant opportunity in this trend as a potential market niche for domestic sports equipment, apparel, and footwear industries to thrive and establish themselves in both local and international markets, thereby strengthening and advancing our national sports industry," said Minister of Industry Agus Gumiwang Kartasasmita in Jakarta on Thursday (10/10).

According to the Minister, the sports equipment industry has substantial economic contribution potential. This opportunity is evident from the industry's ability to enhance export value. Data from Trademap.org in 2023 indicates that Indonesia ranks 24th among sports equipment exporting countries, holding a market share of 0.66 percent.

The top five export destinations for Indonesian sports equipment products are the United States (38%), Japan (15%), South Korea (10%), China (5%), and the Netherlands (5%). The main exported products include sports gloves, fishing rods, golf balls, inflatable balls, and baseball and softball gloves.

We’re hoping that by 2024, the performance of the sports equipment export industry will grow even more and play a bigger role in boosting export values, said the Minister of Industry.

Not only does this sector contribute to exports, but the sports equipment industry is also labor-intensive. According to data from the Large and Medium Industry Directory (BPS, 2023), there are 65 sports equipment businesses in Indonesia that employ over 12,000 people.

“There’s a lot of potential in Indonesia’s sports equipment industry, including shuttlecocks, balls, table tennis gear, and other sports items that can be used in local competitions like PON, IBL, and Pro Liga,” the Minister added.

Agus also mentioned that in terms of quality and product assurance, many domestic sports equipment products meet the Indonesian National Standards (SNI) and have even received domestic content certification (TKDN), allowing them to be included in government procurement. Currently, there are 78 voluntary SNI for sports equipment.

“For example, the soccer ball made by PT. Global Way Indonesia in Madiun, East Java. This ball was used in the 2022 World Cup in Qatar because it meets international standards,” the Minister proudly stated.

However, the Minister acknowledged that there are still many challenges the sports equipment industry faces to remain competitive both domestically and internationally. These include fluctuating demand since this industry is often linked to hobbies or seen as a luxury, as well as the influx of low-quality, cheap imports through online marketplaces.

“I understand that this industry also has to tackle challenges like the unavailability of certain raw materials and components locally, along with the less-than-optimal partnerships between producers and sports federations,” he explained.

Tag: DBON Kemenperin KONI P3DN Program