ITALY JUST BET €2.25 BILLION ON INDONESIAN LEATHER AND IT STARTED WITH A TRIP TO GARUT
Italy pledged €2.25B in trade and financing to Indonesia's leather and footwear industry at IFW 2026 starting with a visit to Garut's tanneries.
Behind the glossy runways of BTN Indonesia Fashion Week 2026, Italian trade officials quietly signed on to something bigger: an industry-wide push into Indonesia's leather and footwear supply chain.
At a glance:
- €2.25 billion Italy's export value to Indonesia in 2025, up 80% year-on-year
- 794 brands, 20,000+ buyers the scale of MICAM Milano, the footwear fair Italy is using as its calling card
- 80% the maximum guarantee SACE offers Italian suppliers financing deals with Indonesian buyers
- Early 2027 the target date for the EU–Indonesia CEPA to take effect
Ten days before BTN Indonesia Fashion Week (IFW) 2026 opened in Jakarta, a delegation of Italian trade officials was in Garut, West Java, walking through tanneries that have been curing leather for generations. That July 27 visit set the tone for what came next: a formal Italy-Indonesia trade mission, led by the Italian Trade Agency (ITA) Jakarta Trade Office alongside ASSOMAC, Assocalzaturifici, and SACE, aimed at deepening cooperation in fashion, leather, and footwear manufacturing ahead of the EU–Indonesia Comprehensive Economic Partnership Agreement (CEPA), expected to take effect in early 2027.

What Is the Italy-Indonesia Trade Mission at IFW 2026?
It's a coordinated push by Italian industry bodies to turn Garut into what ASSOMAC's Director General and delegation head, Agostino Apolito, called a "territorial laboratory" for Italian-Indonesian partnership — a leather and fashion district blending CEPA-driven opportunity, international manufacturing standards, and local identity. The goal isn't just shipping machinery to Indonesia. It's building out technology transfer, workforce skills, institutions, and investment together.
Why Does Garut Matter So Much?
Garut has tanned leather for decades, but it's rarely been positioned as a global manufacturing hub. Apolito's pitch treats it as exactly that: a pilot zone integrating manufacturing, tourism, and culture in one place. If the model works, Garut becomes Italy's proof of concept for exporting its industrial playbook rather than just its machines.
How Much Is Italy Actually Investing?
According to SACE Relationship Manager for Southeast Asia and Oceania, Cristina Colussi, Italian exports to Indonesia hit €2.25 billion in 2025 an 80% jump from the year before. Machinery led the way at roughly €120 million, followed by textiles at €40 million and leather products at €30 million. To keep the momentum going, SACE is offering untied financing under its Push Strategy, guaranteeing up to 80% of deals between Italian suppliers and Indonesian buyers.
"Shoes aren't just the last thing you put on they're the first thing people remember about you. Change the shoe, change the story." Matteo Scarparo, Head of Global Trade, Assocalzaturifici, and representative of MICAM Milano
Scarparo's comment lands because Italy is putting its money where its mouth is: the country is currently seeking UNESCO Intangible Cultural Heritage status for what it calls "The Art of Italian Footwear." MICAM Milano itself, the fair Scarparo represents, pulled in 794 brands and more than 20,000 professional buyers at its last edition a scale Indonesian manufacturers are now being invited to plug into.
On the Indonesian side, Henny Setiadi, Chair of the West Java chapter of the Indonesian Footwear Association (APRISINDO), framed the collaboration as a chance for local manufacturers to "naik kelas" level up through better technology, quality standards, and access to international markets.
What Happens Next?
Follow-up meetings between the Italian delegation and Indonesia's Ministry of Trade, Ministry of Industry, and Ministry of Cooperatives and SMEs are already lining up concrete next steps: business matchmaking, technology transfer, and direct investment between Italian machine makers and Indonesian leather and footwear producers. Indonesian manufacturers are also expected to join Simac Tanning Tech's 52nd edition and MICAM Milano in September 2026 both direct pipelines into the European market.


























