PT Sepatu Bata Tbk (Bata Indonesia) expands the first Shoe Innovation Center (SIC) in Asia as part of the Company's strategic program to become the Center of Excellence in the Indonesian footwear industry.

The SIC in Indonesia is one of only five SICs in the Bata Shoe Organization worldwide. The SIC will be the center of high-quality and innovative product design, high technology, and material usage development that will be applied in production processes in Indonesia and around the world.

The Company's actions to bring the vision of being the Center of Excellence, in addition to the SIC, include brand management and consolidation of manufacturing facilities.

In strengthening the brand management, Bata Indonesia will sign a new trade mark license(TML) agreement with Bata Brands, the owner of the "BATA" brand, to secure the exclusivity of Bata and other Bata family of Brands that include Marie Claire, Bubblegummers, Weinbrenner, Power, Sandak, Bata Industrials, North Star and Island.

PT Sepatu Bata Tbk Director Anita RN Gunawan said, "The signing of the new TML agreement will reduce the business risks of Bata Indonesia.

The new agreement will provide Bata Indonesia with exclusivity for a minimum of 10 years to use the brand name "BATA" and its trademark for use by approximately 500 Independent Dealer stores that depend upon it for their businesses, our corporate name, goods, and services as well as all communications materials."

By managing the risks well, the Company will increase its competency to provide the best service for its customers.
To consolidate its manufacturing facilities and increase the efficiency of the production process, Bata Indonesia will relocate its manufacturing plant from Kalibata to Purwakarta.

The Kalibata plant has been used to manufacture Bata Indonesia's products since 1931. However, the plant is not located in an industrial area.

Therefore, "The plant relocation from Kalibata to Purwakarta is part of Bata Indonesia's commitment to be a good corporate citizen.

The Purwakarta plant, which is located in an industrial area, will provide employees with a more conducive working environment. We expect the relocation will increase the performance of the Company," added Anita.

All of Bata Indonesia's corporate actions are aimed at winning against the competition in Indonesia footwear industry.

Over the last 10 years, China has become a dominant manufacturer in the global footwear industry, causing a slow down in the Indonesian footwear industry.

"This is the time for Bata to win against the competition. We are optimistic that our capacity and capability will secure Bata's position as a center of excellence and sustain and increase our performance in the footwear industry. Not only in Indonesia but also in Asia and around the world," closed Anita.