JAKARTA. PT Sepatu Bata Tbk (BATA), a shoe and footwear manufacturer under the brand Bata, has terminated operational activities of its factory in Purwakarta that has been operating since 1994.

Hatta Tutuko, Director and Corporate Secretary of BATA, mentioned that the closing down of this factory is based on the decision of the board of directors, and had been approved by the board of commissioners on April 29, 2024. The closing has taken effect since April 30, 2024.

Tutuko claimed that BATA has made efforts to improve within the past 4 years amidst loss and industrial challenges following the pandemic and rapid transition of consumer behaviour that entails. Aside from that, Tutuko said that the user demand for products made by Purwakarta factory has continued to decline, while the production capacity exceeds the materials that can be gathered from local suppliers.

“With this decision, the company cannot continue the production in Purwakarta factory,” added Tutuko.

However, Tutuko further mentioned, BATA is committed to the ensure the smooth transition for all employees and partners affected by the winding up of the factory. “This decision is the best solution we can generate based on thorough evaluation and agreement between related parties,” he added.

According to IDNFinancials data, BATA reported loss of IDR 190.29 billion in 2023. The loss swelled 79.65% year-on-year (yoy) from IDR 105.92 billion in 2022, following its sales that only managed to reach IDR 609.61 billion, or down 5.26% yoy. (KR/ZH)