Foreign Investors Target Three Shoe Factories
Friday, 05 January, 2007 | 15:12 WIB

TEMPO Interactive, Jakarta: Three domestic shoe industries that have halted their operation—PT Spotec, PT Dong Joe Indonesia, and PT Tong Yang—will be taken over by foreign investors. Chinese, Taiwan and South Korean shoe factories are preparing to take over the three factories.

Head of the Indonesian Shoe Association Eddy Widjanarko said that the takeover was done to save the three factories as well as to put them in operation. “However, it is still being negotiated whether or not to rent them,” he said yesterday (01/04) in Jakarta.

He explained that foreign investors were interested in renting and continuing manufacturing since the shoe factories were experienced and hold the principal license of foreign shoes. The three factories stopped their production by virtue of mismanagement instead of a mediocre performance.

Eddy said that he did not know the amount of funds that the new investors spent to take over the factories. “The problem was that national banks have asked new investors to repay their debts and they cannot be transferred to other parties,” he said. According to him, the process may hamper the takeover process.

MUHAMAD FASABENI