Bata Shoe Factory In Purwakarta Closes, Ministry Of Industry Plans To Summon Management

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The Ministry of Industry (Kemenperin) said it would summon the management of PT Sepatu Bata Tbk (BATA) to ask for an explanation regarding the closure of the factory in Purwakarta, West Java.

"We will call the Bata footwear industry in the near future," said Ministry of Industry spokesman Febri Hendri Antoni Arif when met by reporters at the Ministry of Industry office, Jakarta, Monday, May 6.

Febri said that during the summons, his party would suggest that the Bata factory be strengthened again.

He considered that the import prohibition policy (laltas) through Permendag Number 3 of 2024 concerning Amendments to Permendag Number 36 of 2023 concerning Import Policy and Regulation did not interfere with the footwear industry business.

"We suggest strengthening the factory in Indonesia again. The lartas policy is to encourage investment in the footwear industry sector that has been hit by lartas to enter. Build factories in Indonesia, because the (imported shoes) products, right, are controlled," he said.

In terms of products, Febri assessed that the composition of Bata's shoes was mostly in the retail sector and was filled with imported products.

"The Bata manufacturer itself produces only a small number of shoes. Even then, the raw materials come from imports," he said.

Furthermore, said Febri, the condition of the footwear industry is generally in good condition.

"The footwear industry is good, right. We now have a lot of footwear products. We hope that the footwear industry can run fast after the implementation of the lartas," he said.

Previously, PT Sepatu Bata (BATA) officially closed the factory operations in Purwakarta, West Java, as of April 30, 2024.

Shoe Corporate Secretary Bata Hatta Tutuko said the company closed operations due to losses amid declining demand.

"With this decision, the company cannot continue production at the Purwakarta factory," he said as quoted from the information disclosure of the Indonesia Stock Exchange (IDX), Monday, May 6.

Tutuko admitted that BATA has made various efforts over the past four years amid losses and industrial challenges due to the COVID-19 pandemic. On the other hand, changing consumer behavior so quickly is also a challenge.

As a result, the company had to close the factory operations in Purwakarta.

Even so, said Tutuko, BATA is committed to ensuring smooth transition for all employees and their partners affected by the factory closure.

"This decision is the best thing that can be taken based on a thorough evaluation and agreement of related parties," he said.