Bata Shoe Factory In Purwakarta Closes, Minister Of Industry Agus: They Are In Business Transformation

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. (Photo: Theresia Agatha/VOI)

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the closure of the Shoe Bata factory in Purwakarta, West Java, was an effort by the company to transform its business.

"I can convey that he (PT Sepatu Bata Tbk) is making efforts to transform the business and they are adjusting their business activities to be more efficient," said Minister of Industry Agus in his official statement, Tuesday, May 7.

Agus also said that Bata had sold its assets so that the company could return to efficiency.

"Including what we know together, they have sold assets. That is in order to make the company healthy and efficient again," he added.

Previously, Spokesperson for the Ministry of Industry (Kemenperin) Febri Hendri Antoni Arif said his party would summon the management of PT Sepatu Bata Tbk (BATA) to ask for an explanation regarding the factory closure 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 recommend strengthening the factory in Indonesia again. The lartas policy is to encourage investment in the footwear industry sector that has been hit by lartas. 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.

Meanwhile, 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.