Factories there remain closed. Nike’s factories in Indonesia, however, are back to full production, but are still suffering from the lost time they were under lockdown. More than half of Nike’s apparel factories are in Vietnam, and the brand has already lost more than 10 weeks of production time due to the lockdowns.
Why is Nike located in Indonesia?
In Indonesia, Nike found a country with a supply of cheap labor. Even with its minimum wage policy, that â€œminimum wageâ€ (then) was low enough to become an attractive incentive rather than a turnoff in their cost calculations. Over the years, Nike expanded its factories across the country.
How many employees does Nike have in Indonesia?
With 171,000 Nike-affiliated workers, Indonesia is the third-largest producer of goods for the company, according to The Independent. This is not the first time that Nike has come under fire for its labor practices in the country.
How many Nike factories and workers does Tangerang Indonesia have?
When I ask how many people are involved in making one shoe, I am told, “200.” According to Nike’s 2009 Corporate Responsibility Report, this is one of about 40 different factories Nike contracts with in Indonesia. Seven of these make footwear. Altogether these footwear factories employ nearly 69,000 people.
Who makes Nike shoes in Indonesia?
Indonesian Industry Minister Saleh Husin inaugurated the new USD $60 million shoe factory of Changshin Reksa Jaya in Garut (West Java) which will produce Nike branded shoes. The shoe factory has an annual production capacity of 15 million pairs and will provide employment to 5,500 people.
How much do Nike workers get paid in Indonesia?
Much of Adidas’ and Nike’s sportswear is made in Indonesia, where 80 percent of workers in the garment sector are women and some make as little as 86 euros ($102) a month while others do not earn the legal minimum wage, according to the CCC’s report.
Are Nike made in Indonesia?
Most of Nike’s shoe factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, the Philippines, and Malaysia.
Does Nike own factories in Indonesia?
Adis Dimension Footwear, the local Indonesian unit of the US-based multinational footwear and sportswear manufacturer Nike Inc, announced a new 60 million US dollars factory in Majalengka (West Java). Total production from this factory is exported. …
Does Nike have sweatshops in Indonesia?
Sweatshops are common in developing countries, including in Indonesia, India, Thailand, Bangladesh and Cambodia, where labour laws are rarely enforced. A Nike factory in Thailand. The factories, which are often housed in deteriorating buildings, are cramped with workers and pose fire dangers.
How many Nike factories are in Indonesia?
Indonesia is the third biggest producer of Nike goods, after Vietnam and China, with 40 factories employing 171,000 people.
How many people does it take to make one pair of shoes?
AS MANY AS 70 PEOPLE ARE REQUIRED TO CREATE A SINGLE PAIR OF SHOES! Shoes are some of the most important elements of our garments.
How many people does it take to make one shoe?
The shoe material makes up about 50% of the final cost. The factory will have to use a line of credit borrowed against the shoe order to buy the materials. Because of this, a shoe factory may demand a 50% payment up front when the order is placed. This process can take a week to complete.
How much are Nike shoes in Indonesia?
“The retail price of Nike shoes in the U.S. is between $50 and $175, on average $75,” the study said. “But the production cost in Indonesia is $5.60 a pair.
Who makes Nikes?
The company was founded on January 25, 1964, as “Blue Ribbon Sports”, by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike, the Greek goddess of victory.
|Headquarters near Beaverton, Oregon|
|Formerly||Blue Ribbon Sports, Inc. (1964–1971)|