Darwin Simanjuntak and Francis Hutabarat

Universitas Advent Indonesia

Mr. Francis M. Hutabarat is a Doctor of Philosophy in Business Management from Philippine Christian University in Manila, Philippines. Currently, he is a lecturer at the Universitas Advent Indonesia in Bandung, Indonesia. His research interests include Financial Management and Investment Portfolio.

Abstract

This study aimed to identify the factors affecting footwear trade industry in Indonesia based on Indonesia’s main export destination. Understanding these factors could help leaders in the trade industry to plan their strategies better and further research on footwear trading. A set of data was obtained from Badan Pusat Statistic (BPS) based on the data from Indonesia’s footwear main export destination namely: United States, China, Belgium, Germany, Japan, United Kingdom, Netherlands, Korea, Italy, Australia, Mexico, France, Canada, Denmark, Singapore, Brazil, Hong Kong, Russian Federation, Chile, Argentina and other countries. Exploratory factor analysis was used to identify the underlying dimensions of countries as Indonesia main export destination. The result of the study showed that the sample size was adequate for the analysis and the communalities of all the variables were more than .4; therefore, all the variables were useful in the model. Since, the variables were identified in a factor of 0.7 or more, the result showed that all factors based on Indonesia’s main export destination which was from the years 2012-2016 contributed to the exports of footwear in Indonesia.

 

Keyword: Footwear, Factor Analysis, Export, Indonesia