Reebok to dismiss 3,000 RI workers<\/p>\n
JAKARTA (JP): American sports clothing line Reebok, in
\nanticipation of shrinking production this year, plans to slash
\nemployment of some 3,000 workers in its subcontracting footwear
\nfactories in Indonesia, a report says.<\/p>\n
A deputy of the Investment Coordinating Board (BKPM), Sugihono
\nKadarisman, said over the weekend that Reebok Boston told a team
\nof BKPM officials last November it would cut down production in
\nIndonesian shoe manufacturing factories.<\/p>\n
\"The production cut is caused by a shift in market segment,
\nnot because of the country's political condition,\" Sugihono was
\nquoted by Bisnis Indonesia daily as saying on Monday.<\/p>\n
One of the five manufacturing factories, which are located in
\nJakarta and Bandung, West Java, has stopped producing, he said.<\/p>\n
\"The supply of Reebok shoes from Indonesia will remain at 25
\npercent of the world's, but the closing of one of the factories
\nwill leave 3,000 people jobless,\" Sugihono said.<\/p>\n
Three of Reebok's manufacturing factories here are locally
\ninvested subcontracting companies, while the other two
\nsubcontractors were foreign direct investors, the daily reported.<\/p>\n
Meanwhile, the secretary-general of the Indonesian Footwear
\nAssociation, Djimanto, said on Monday there had been no
\nindications that other local producers for brand-name sporting
\nshoes would reduce staff numbers as their productions remained
\nstable.<\/p>\n
\"As far as I know, only Reebok plans on doing it, and it's
\ndecline in orders is caused mainly by tighter competition among
\nother sporting shoe producers,\" Djimanto told The Jakarta Post.<\/p>\n
He said market trends had shifted from sport shoes to casual
\nand \"brown shoes\", the half casual half sport shoes.<\/p>\n
In addition, international sport shoe producers saw their
\nsales pie diminishing, as they also had to compete with local
\nfootwear producers, whose products were normally much cheaper, he
\nsaid.<\/p>\n
Djimanto said 60 percent of shoe producers in Indonesia
\nsupplied international brands, while the remaining 40 percent
\nwere producers of local brands like Carville and Neckerman and
\nsuppliers of foreign but smaller brands like Lotto and L.A. Gear.<\/p>\n
Aprisindo earlier forecasted a drop in export orders of
\nlocally made footwear to US$1.5 billion this year from $1.8
\nbillion in 1998, as foreign buyers anticipated economic and
\npolitical instabilities in Indonesia.<\/p>\n
The association's 170 member companies had shrunk to 107 this
\nyear, Djimanto said. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/reebok-to-dismiss-3000-ri-workers-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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