President Jokowi Concerning The Bata Shoe Factory In Purwakarta Closes: Losing Competitively

JAKARTA - President Joko Widodo assesses the closing of the Bata shoe factory in Purwakarta Regency, West Java, because it is less competitive with new products.

"If the problem is that there is a factory that is closed, a business will go up and down due to conditions, because it may be efficiency, because it is less competitive with new goods. There are many things," said President Jokowi, quoted from ANTARA, Tuesday, May 7.

On the other hand, Jokowi emphasized that the closure of the domestic company factory named PT Sepatu Bata Tbk did not describe the overall condition of the Indonesian economy.

This is because the Central Statistics Agency (BPS) reported that Indonesia's economy grew by 5.11 percent on an annual basis (year-on-year/yoy) in the first quarter of 2024.

Jokowi assessed that national economic growth was 5.11 percent growing optimality in the midst of the current global recession.

"But what is clear is macro, our economic development is very good 5.11 (percent)," said the President.

Around the end of March, the shoe company Bata reported plans to stop production at a factory located on Jalan Raya Cibening, Bungursari District, Purwakarta.

Among the reasons, because for the last four years, the Bata shoe factory has lost money due to lack of orders.

Separately, Head of the Purwakarta Manpower and Transmigration Office Didi Garnadi said PT Sepatu Bata also laid off its employees gradually.

The number of employees who were laid off was 233 people.

PT Sepatu Bata Tbk established a factory in Purwakarta since 1994 and officially closed in early May 2024.

The termination of the production of the shoe factory has been announced through the disclosure of information on the Indonesia Stock Exchange, May 2, 2024.

In early 2023, President Jokowi took the time to try and buy shoes at one of Indonesia's legendary shoe shops, Bata, when the Head of State visited the shopping center of Kota Kasablanka.

At that time, President Jokowi bought black sneakers sold at the Bata shoe shop for IDR 349,900.