Nike denies reducing shoe orders<\/p>\n
Multa Fidrus, The Jakarta Post, Tangerang<\/p>\n
Giant U.S. sports company Nike denies it has reduced its shoe
\norders from Indonesia, saying that orders this year are stable
\nand will be similar to that of last year.<\/p>\n
\"Any statement indicating that Nike is significantly reducing
\norders to Indonesia is incorrect,\" Nike Indonesia's General
\nManager Jeff DuMont told The Jakarta Post on Thursday.<\/p>\n
\"Nike continues to value Indonesia as an important part of our
\nglobal strategy and we will continue to make efforts to support
\nthe success of Nike contract factories and promote stability for
\nthe Indonesian people employed in these factories.\"<\/p>\n
He was commenting on the closure of PT Doson Indonesia due to
\nthe U.S. company's decision to cease orders from the
\nsubcontractor and a statement made by Herry Rumawatin, chairman
\nof the Indonesian Businessmen Association's (Apindo) Tangerang
\nbranch office, that so far this year Nike had reduced its orders
\nfrom its Indonesian subcontractors by about 40 percent.<\/p>\n
PT Doson closed its business in September after Nike stopped
\nits shoe orders from the firm.<\/p>\n
Herry said the subcontractors had suffered financial
\ndifficulties since Nike drastically dropped orders from the
\ncompanies and they had to fire up to 30 percent of their workers
\nto survive.<\/p>\n
\"We expect the order reduction will reach up to 50 percent
\nlater this year,\" he said, adding that the companies had seen
\ndifficulties since last year, and was compounded by the Bali bomb
\nattack on Oct. 12.<\/p>\n
\"In our recent meeting, several companies had also forwarded
\nplans to dismiss workers as an inevitable efficiency step, but I
\nhave not confirmed again how many workers would be dismissed,\" he
\nsaid, adding the figure could be as high as 30 percent of total
\nworkers at each company.<\/p>\n
Data from the Tangerang regency's industry and trade agency
\nshows that the seven large shoe producers that depend on orders
\nfrom Nike were PT Pratama with 3,060 workers in Serpong, PT
\nStarwin with 2,613 workers in Cikupa, PT ADI with 1,597 workers
\nin Balaraja, PT Karet Murni with 3,015 workers in Curug, PT
\nNagasakti with 4,761 workers in Pasar Kemis, PT KMK Global with
\n9,378 workers in Cikupa and PT Hardaya Aneka Shoes Industry
\n(HASI) in Jatiuwung with 5,600 workers.<\/p>\n
But DuMont said that Nike was committed to maintaining orders
\nfrom Indonesia. \"Our commitment is demonstrated by our ongoing
\nwork with 47 contract footwear, apparel and equipment contract
\nfactory groups in Indonesia, which employ over 120,000 people.
\nWhile business reality and global conditions do impact our
\nbusiness practices, Nike is looking forward to a positive future
\nin Indonesia,\" said Jeff Dumont.<\/p>\n
In response to the declining orders, Tangerang regent Agus
\nDjunara had sent letters to Minister of Trade and Industry Rini
\nSuwandi, requesting the minister take the necessary steps to
\nresolve the problem.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/nike-denies-reducing-shoe-orders-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}