PT Sepatu Bata Tbk (BATA) has officially exited the footwear manufacturing business. The Ministry of Industry stated this decision is part of the company’s internal business strengthening strategy.

Strategic Shift Toward Digital Retail and Financial Recovery

Ministry of Industry spokesperson Febri Hendri Antoni Arief explained that Bata’s move aims to improve its business structure by focusing on digital retail. “Bata is choosing to focus on strengthening e-commerce, no longer on manufacturing. Selling assets is part of their business decision to improve financial health,” said Febri to Kompas.com on Thursday, October 9, 2025.

The company’s shift was formalized during an Extraordinary General Meeting of Shareholders (RUPSLB) on September 25, 2025. At the meeting, shareholders approved the removal of the footwear manufacturing business from the company’s articles of association.

Factory Closure and Resignation of the President Commissioner

This development follows the closure of Bata’s factory in Purwakarta, West Java, in April 2024, due to declining demand. The RUPSLB also accepted the resignation of Rajeev Gopalakrishnan from his role as President Commissioner. Rajeev submitted his resignation on June 25, 2025.

First-Half Financials Show Reduced Losses and Revenue Decline

In its financial report for the first half of 2025, BATA posted a net loss of IDR 40.62 billion. This is an improvement from the IDR 127.43 billion net loss in the same period of the previous year. However, net sales dropped 38.74 percent to IDR 159.43 billion, down from IDR 260.29 billion.

The company’s total assets stood at IDR 377.98 billion by the end of June 2025, compared to IDR 405.66 billion at the end of 2024. Total liabilities were recorded at IDR 434.53 billion, while equity reached IDR 56.54 billion.

Government Affirms Domestic Footwear Industry Stability

Febri emphasized that although Bata has exited the manufacturing sector, Indonesia’s footwear industry remains strong. He stated that domestic production still meets market demand both locally and for export.

PHOTO: KOMPAS.COM/TRI PURNA JAYA

This article was created with AI assistance.