Bata Shoes, After Years of Losses, Lays Off 230 Workers

PT Sepatu Bata Tbk, a shoe manufacturer, closed its operational factory in Purwakarta, West Java, on April 30, 2024. The closure resulted in at least 230 workers experiencing mass layoffs.

According to *Katadata*, Hatta Tutuko, Corporate Secretary of Sepatu Bata, stated that management had made several attempts to maintain production at the factory, which had been operating for nearly 30 years. However, despite four years of losses, the business remained unable to recover.

"Losses and industry challenges due to the pandemic, coupled with rapidly changing consumer behavior, could not stem the losses," said Hatta on Saturday (5/4/2024).

Hatta said the Purwakarta factory operations were forced to cease because customer demand for the types of products manufactured there continued to decline. He explained that the factory's production capacity far exceeded domestic needs.

(Read *Katadata*: [230 Sepatu Bata Employees Laid Off, Ministry of Manpower Reminds of Severance Pay Regulations](https://katadata.co.id/berita/industri/663867522b200/230-karyawan-sepatu-bata-kena-phk-kemenaker-ingatkan-aturan-pesangon))

Referring to the company's financial statements published by the Indonesia Stock Exchange (BEI), Bata's net sales reached Rp438.48 billion in 2021. 1,578 products were successfully sold. However, net profit or profit for the year was a negative Rp51.23 billion.

A year later, net sales increased to Rp643.45 billion. Production also increased to 1,801 products. However, losses were still unavoidable, amounting to Rp106.12 billion.

The situation became more unstable in 2023. Net sales fell to Rp609.61 billion, as did production, which reached 1,153 products. The company's profit was recorded at a negative Rp190.56 billion.

The assets of the Czech shoe manufacturer amounted to Rp585.74 billion in 2023. This comprised liabilities totaling Rp454.39 billion and equity of Rp131.35 billion.

(Read also: [Indofarma Loses Money, Workers Ordered to Work Despite Unpaid Wages](https://databoks.katadata.co.id/datapublish/2024/04/26/indofarma-boncos-buruh-diperintah-bekerja-meski-gaji-tak-dibayar))