Brick shoes, once successful until the factory in Purwakarta closed

JAKARTA – Bata is probably one of the most well-known footwear brands in Indonesia. This is not surprising, because Bata shoes have been on the Indonesian footwear market for more than 80 years.

Many people think that Bata is a genuine domestic product. In fact, this footwear product comes from a European country that was formerly Czechoslovakia, which was founded by the Tomas, Anna and Antonin Bata family.

Citing various sources, Bata first entered Indonesia in 1931. Bata’s entry into Indonesia began with Bata’s collaboration with NV, Netherlandsch-Indisch, as a shoe importer operating in Tanjung Priok.

About 6 years later, Tomas Bata established his shoe factory in the middle of a rubber plantation in the Kalibata area. Furthermore, shoe production began in 1940.

Before 1978, Bata’s status in Indonesia was a foreign investment company (PMA), so it was prohibited from selling directly to the market. Bata sells through special dealers on a consignment system. The status of these dealers was changed on January 1 1978, when Bata’s trading license was “transferred” to them and PT Shoes Bata became a domestic investment company (PMDN).

Bata is included in the list of the largest factories in Indonesia, which produces shoes that can be used by all groups. The Bata family operates around 4 international business units, namely Bata Europe, Bata Asia Pacific-Africa, Bata Latin America, and Bata North America.

Their products are also present in more than 50 countries around the world and have sold billions of pairs of shoes since they were first established.

However, Bata’s glory in Indonesia with its long history has recently begun to fade. Recently, Bata was forced to stop operating its factory in Purwakarta due to a lack of orders. It was stated that consumer demand for Bata shoe products from this factory was decreasing.

Bata Corporate Secretary Hatta Tutuko in his official statement quoted from the information disclosure on IDX Channel on Saturday (4/5/2024) revealed that the factory closure will be carried out as of April 30 2024. Hatta explained that PT Shoes Bata Tbk has made various efforts to maintain business. the factory for the last four years.

“The company is no longer able to continue production at the Purwakarta factory, because customer demand for the types of products made at the Purwakarta factory continues to decline and the factory’s production capacity far exceeds the needs that can be obtained sustainably from local suppliers in Indonesia,” wrote Hatta.

Regarding performance, Bata itself is known to have suffered a loss of IDR 80.65 billion in the period January to September 2023, an increase of 294.76% compared to a loss of IDR 20.43 billion in January-September 2022. The Company’s net sales were also recorded to have fallen 0.42% to IDR 488. 47 billion in January to September 2023, from IDR 490.57 billion in the same period the previous year.

(fjo)