Yogyakarta, Australia Partner to Supply Leather for Industry

Crafting a snake-leather bag in Cisoka, Tangerang Regency, Banten, Indonesia, January 6, 2026. The government covers Income Tax (PPh) Article 21 in 2026 for workers in five labor-intensive sectors, namely footwear, textiles and ready-made clothing, furniture, leather and leather goods, as well as tourism. This is to maintain public welfare through the provision of fiscal facilities. Antara/Putra M. Akbar

TEMPO.CO, Jakarta - The government of Yogyakarta is exploring a collaboration with Australia to strengthen the leather industry ecosystem.

"The main focus of this collaboration is to integrate the abundant raw materials from Australia with the technical skills and creative processing of leather, which are the characteristics of Yogyakarta," said the Indonesian Ambassador to Australia, Siswo Pramono, after meeting with the Governor of Yogyakarta, Sri Sultan Hamengku Buwono X, at the Kepatihan Complex, Yogyakarta, Central Java, on Monday, March 30, 2026.

Siswo revealed that this initiative is a logical development from the longstanding trade relationship in the livestock sector between the two countries. He emphasized that the strong foundation of the Australia-Indonesia cattle trade should be directed towards strengthening the downstream industry.

Siswo mentioned that this plan has received the green light from the Australian Ministry of Industry and Innovation, which sees great potential in Yogyakarta as a traditional leather industry center in Indonesia.

"The cattle trade relationship between Australia and Indonesia is already advanced. This is a strong foundation to move further into its downstream industry," he said.

According to him, this collaboration will also involve the private sector, including business delegations and leather suppliers from Australia, as well as representatives of the Indonesian Tanning Association (APKI).

Prior to meeting the Sultan, the Australian delegations had conducted field visits to local industrial centers, including Ndalem Kulit Jogja.

The visit resulted in plans to use raw materials of wet blue leather from Australia, which will be processed into various value-added products, ranging from handicrafts to cultural instruments such as leather puppets (wayang kulit).

The Head of the Department of Industry and Trade (Disperindag) of Yogyakarta, Yuna Pancawati, explained that each layer of leather has different economic potential when handled by someone with the right skills.

The absorption of international quality raw materials is believed to strengthen the competitiveness of local products internationally.

"Each part of the leather has different potential uses, ranging from the outer layer to the inner layer. This can be developed into various high-value products," she said.

Yuna believes that this collaboration will impact not only the Yogyakarta economy, but also have the potential to stimulate growth in similar industries in Central and East Java. It will also create new job opportunities and establish a sustainable leather industry ecosystem through strengthening the supply chain from raw materials to finished products.

Read: Indonesia Keeps Fuel Prices Steady as Pertamina Absorbs Cost of Oil Surge

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