New Balance reportedly expands Indonesian operations with investments of new factory

Footwear brand New Balance is reportedly planning to expand its Indonesian operations with the addition of investment to a new factory located in the West Java town of Cirebon.

This came as the Indonesian government introduces a Job Creation Law, easing investment and business procedures. According to the Jakarta Globe, Elmore Simorangkir, country manager of New Balance acknowledged that Indonesia is seeing significant growth under President Joko Widodo and that New Balance has long been considering expanding its operations in the country. However, it only recently made the decision after the country adopted the job creation law which "offers incentives to investments.”

Before deciding to expand its operations in Indonesia, New Balance considered numerous factors, such as the country's legal system and political situation, according to media reports. Among the countries where New Balance manufactures its footwear, Indonesia has experienced particularly rapid growth, according to Vik Saran, director of materials, Asia at New Balance.

Currently, New Balance sources footwear and apparel from factories in Banten and East Java, with plans to expand into Central and West Java. 

Don't miss: Samsonite launches expressive new collection with New Balance

New Balance currently operates six factories in collaboration with local manufacturers in Indonesia, the company also reportedly plans to open a seventh in Cirebon, West Java, about 200 kilometers east of Jakarta, with production set to begin in August, creating 40,000 new job opportunities along with other factories.

MARKETING-INTERACTIVE has reached out to New Balance Indonesia for more information.

New Balance has been active in its campaigns in recent weeks and recently launched a collection with luggage brand Samsonite to celebrate individual expression and versatility. 

Done in partnership with Studio NPLUSC and OMD, the 'Live Undefined' campaign was inspired by the expressive nature of the urban city dweller who is simultaneously juggling different professions and passions, said Samsonite in a statement. The collection additionally seeks to encourage individuals to live and pursue their dreams fearlessly, fuel their desire to stand out, and foster a love of exploration.

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