Lack of Buyers, 4 Years of Continuous Losses

JAKARTA – PT Shoes Bata Tbk experienced losses in recent years due to a decline in customer demand. This resulted in the closure of the factory in Purwakarta, West Java.

“With this decision, the company cannot continue production at the Purwakarta factory,” said Bata Corporate Secretary Hatta Tutuko in an information disclosure on the Indonesia Stock Exchange (BEI), quoted on Sunday (5/5/2024).

Management explained that the operational closure of the Bata shoe factory in Purwakarta, which will be carried out from April 30 2024, is part of the company’s efforts over the last 4 years to survive amidst industrial losses and challenges due to the pandemic and rapid changes in consumer behavior. Customer demand for the types of products made at the Purwakarta Factory continues to decline.

Bata shoes are a legendary brand in Indonesia. The Covid-19 pandemic several years ago also hit businesses.

Based on reports, the company’s sales performance fell 49% from IDR 931.27 billion in 2019 to IDR 459.58 billion in 2020. In 2019, the loss was only IDR 23.44 billion, soaring to IDR 177.76 billion in 2020.

As of December 31, 2023, BATA posted a loss for the year attributable to the parent entity of IDR 190.29 billion. BATA’s net sales were recorded at IDR 609.61 billion in 2023 or down 5.26% year on year (yoy) compared to the previous year’s IDR 643.45 billion.

(nng)