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LISTED COMPANY - JAKARTA. The Indonesian Footwear Association (Aprisindo) has responded to the recent closure of a factory owned by PT Bata Shoes Tbk (BATA) in Purwakarta, West Java.
As it is known, BATA's management announced the cessation of factory operations in Purwakarta based on a Board of Directors' decision on April 30, 2024, which had previously been approved by the Board of Commissioners on April 29, 2024.
Over the past four years, BATA has made various efforts amidst losses and industry challenges due to the Covid-19 pandemic and rapid changes in consumer behavior.
The company was unable to continue production at the Purwakarta factory due to declining consumer demand and factory capacity far exceeding the sustainable needs that could be obtained from local suppliers in Indonesia.
Aprisindo's Executive Director, Firman Bakri, believes that the issues faced by BATA reflect the general condition of the national footwear industry, which has not recovered since the Covid-19 pandemic.
The challenges in 2024 are quite heavy, along with inflation of basic needs and others that affect the purchasing power of the community.
Aprisindo also mentioned that several footwear brands for the middle and lower-middle segments experienced a decline in sales during the 2024 Eid period compared to the same period the previous year.
"This certainly also affects footwear manufacturers," he said, on Sunday (5/5).
According to Aprisindo, BATA is a shoe brand that has been present in the Indonesian market for a long time. In addition to having a domestic market share, BATA is also active in exporting its products abroad.
Firman also mentioned that BATA's business is still running, especially in the retail footwear sector. In addition to production in Purwakarta, BATA also has a business scheme in the form of order manufacturing on contract or maklon to local Indonesian factories for the brand.
"From the information circulating, the closure of the Bata shoe factory is due to order problems that impact the deficit that the company must bear," he concluded.
