Over the past year, leading global footwear brands, including Nike and Adidas, have expanded their production in Indonesia. This development is a positive sign for the country’s footwear and apparel industry, showcasing its competitiveness on the global stage.
According to Indonesia’s official news agency, Ministry of Industry spokesperson Febri Hendri Antoni Arief stated that Indonesia contributes 30% of the total workforce employed in Nike and Adidas manufacturing plants worldwide.
Febri emphasized that this percentage reflects global recognition of Indonesia’s strong manufacturing sector. Beyond strengthening Indonesia’s position as a global manufacturing hub, the expansion has also created more job opportunities for the local workforce.
Increase in Domestic Employment
Febri also highlighted that Indonesia has successfully attracted a larger share of production from these two global giants, even surpassing countries like China, Vietnam, and Cambodia.
In the footwear sector alone, 7,644 new workers were recruited in 2024, marking a 3% year-on-year (YoY) increase and bringing the total workforce in this industry to 271,774 employees.
Meanwhile, the apparel sector saw even stronger job growth, with the addition of 10,013 new workers—an impressive 30% increase compared to the previous year—bringing the total workforce in this sector to 36,409 employees.
Furthermore, Febri noted that most Nike and Adidas supplier factories in Indonesia are owned by foreign investors, particularly from China, South Korea, and Taiwan.
Leading investors, such as South Korea’s Ontide and Vietnam’s Korrun, are continuously expanding their workforce to increase production capacity. However, PT Pancaprima Ekabrothers experienced a 10.9% decline in its workforce. At the same time, Adidas is exploring new factory partnerships in Indonesia with local companies like PT Adonia and PT Aroma.
Rising Footwear and Apparel Exports
The Ministry of Industry reported that Indonesia’s footwear and apparel exports showed significant growth throughout 2024. The total export value for these industries reached $11.2 billion, reflecting a 9.8% increase compared to the previous year.
The United States remains the largest market for Indonesian apparel, accounting for 60% of total exports. Additionally, footwear exports to the U.S. surged by 24.6% YoY, reaching $2.9 billion.
Febri expressed optimism about this upward trend, viewing it as a major opportunity to strengthen the domestic industry. This growth not only enhances Indonesia’s global competitiveness but also creates new job opportunities and delivers widespread economic benefits.
“We are committed to fostering a favorable investment climate, enhancing workforce skills, and strengthening industrial infrastructure to position Indonesia as a key player in the global supply chain,” Febri stated, as quoted by metrotvnews.com.
Government Efforts
Febri reiterated that the government remains dedicated to ensuring a conducive investment environment for the manufacturing sector.
“We will continue to create a business-friendly environment, enhance workforce skills, and develop industrial infrastructure to maintain Indonesia’s strategic role in the global supply chain,” he affirmed.
The Ministry of Industry urges all stakeholders to maintain this positive momentum to support national economic recovery and improve the welfare of Indonesians through a more inclusive and sustainable industrial sector.
Source: antaranews.com, metrotvnews.com, sokoguru.id
Photo Credit: via RRI
