Indonesia's footwear and apparel industry is once again showing its strength on the global stage. Over the past year, Indonesia has become the top choice for world-famous brands such as Nike and Adidas to expand their production.
“Indonesia now accounts for almost 30% of Adidas's and Nike's total global factory workforce. This is real proof that the competitiveness of our manufacturing industry is increasingly recognized by the world,” the Ministry of Industry spokesperson, Febri Hendri Antoni Arief, said in a statement in Jakarta on Monday (17/3).
This not only reinforces Indonesia's position as a world-class manufacturing hub, but also creates ever-wider job opportunities for the domestic workforce.
Indonesia has succeeded in attracting more production allocation from these two global giants, even shifting production centers away from countries such as China, Vietnam and Cambodia.
In the footwear sector, 7,644 new workers were hired in 2024, up 3% from the previous year, bringing the sector's workforce to 271,774. In the apparel sector, hiring grew faster, with 10,013 new workers added, a 30% jump year-on-year, for a total of 36,409 workers.
Most of the Adidas and Nike supplier factories in Indonesia are owned by foreign investors, mainly from China, South Korea and Taiwan. They are increasingly active in adding workers to increase production capacity. For example, Ontide (South Korea) and Korrun (Vietnam) have hired more Indonesian workers.
On the other hand, PT Pancaprima Ekabrothers saw its workforce fall by 10.9%, while Adidas is exploring opening new factories in Indonesia through local partners such as PT Adonia and PT Aroma.
Kemenperin notes that footwear and apparel export performance grew stronger throughout 2024. Indonesia's total footwear and apparel exports in 2024 exceeded USD 11.2 billion, up 9.8% from the previous year. The United States remains the largest market, absorbing 60% of Indonesia's apparel exports. For footwear, exports to the US jumped 24.6% (yoy), equivalent to USD 2.9 billion.
Kemenperin sees this positive trend as a great opportunity to strengthen domestic industry. It not only increases Indonesia's competitiveness in global markets, but also opens up new jobs and has a broad multiplier effect.
“We are committed to continuing to create a conducive investment climate, improving workforce skills and strengthening industrial infrastructure so that Indonesia becomes an increasingly strategic partner in global supply chains,” Febri stressed.
Kemenperin also invites all parties to work together to maintain this positive momentum in order to support national economic recovery and improve public welfare through an inclusive and sustainable industrial sector.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia