How does Nike operate in Indonesia?

Does Nike produce in Indonesia?

It is these basic facts that underlie the concerns workers are expressing. Please note that Nike has reported to the WRC that its footwear production will not be substantially affected by the relocation (Indonesia is a large producer of footwear for Nike, adidas, and other sports apparel brands).

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.

When did Nike start manufacturing in Indonesia?

Nike first started using Japanese plants in 1964. When labor costs there climbed in the mid-1970s, it gave South Korea and Taiwan a run. In the 1990s, production jumped to Indonesia and China, which now account for two-thirds of Nike output.

How many factories does Nike have in Indonesia?

Indonesia is the third biggest producer of Nike goods, after Vietnam and China, with 40 factories employing 171,000 people.

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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 many people do Nike employ in Indonesia?

Nike employs 110,000 workers in Indonesia, 27,000 of them in its footwear factories.

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.

Where does Nike operate?

Nike has contracted with more than 700 shops around the world and has offices located in 45 countries outside the United States. Most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.

Where are Nike shoes manufactured?

Almost all Nike shoes are manufactured outside of the United States. The leading manufacturer of Nike shoes is China and Vietnam each accounting for 36% of the total manufactured world wide. Indonesia accounts for 22% and Thailand for 6% of the Nike shoes that are being produced world wide.

Why does Nike manufacture overseas?

Yet NIKE owns no factories for manufacturing its footwear and apparel, which make up ~88% of its revenues. Instead, manufacturing is outsourced to third parties because of the cost advantages of doing so. Most raw materials in NIKE’s supply chain are sourced in the manufacturing host country by independent contractors.

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Why are Nike factories in Indonesia?

Nike – the shoe company that produces those famous athletic shoes – set up factories in Indonesia because of the low wages there. Today, typical workers can earn the equivalent of around $3.50 per day, which for a six day work-week amounts to $21.

What is Nike’s manufacturing process?

Nike never has a practice of manufacturing its products but it outsources the manufacturing process to the suppliers, who are called the “contractors”. These products are manufactured in 600 contract factories with a workforce of more than 800,000 employees all over the world in 46 countries.

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.