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Indonesia oldest shoemaker Bata closes its only factory
Industry association Aprisindo has noted that although Bata had closed its Purwakarta factory, the manufacturer was continuing to produce its branded footwear through contractual agreements with third-party factories.
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Bata products in an undated photo. (Bata/-)
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T Sepatu Bata, the oldest footwear manufacturer in the country, had ceased production at its only factory in the West Java regency of Purwakarta due to a drop in demand, the company announced on Thursday.
The publicly listed company, which is known for its Bata and Marie Claire brands, explained in a statement that low demand had led to huge excess capacity, and that its board of directors had approved on April 30 the decision to halt production.
“It is the best decision that we could make, based on comprehensive evaluation and negotiations with relevant parties, to enhance efficiency in the company’s operations. We are committed to ensuring a smooth transition for employees and partners affected by this change,” Bata spokesperson Hatta Tutuko said in the statement.
The decision comes after Bata spent the past four years struggling to stay afloat.
Last year, the shoe manufacturer booked a net loss of Rp 190 billion (US$11.9 million), an increase of over 80 percent from a net loss of Rp 105 billion in 2022, which was more than double the net loss of Rp 51.20 billion recorded in 2021.
Also in 2023, the company had downsized its workforce 3.6 percent to 366 employees across all levels, from the factory floor to top management.
Read also: Waves of lay-offs sweep Indonesia’s export-oriented industries in 2023
