What is the main reason Nike is in Indonesia?

Does Nike have a factory in Indonesia?

Indonesia is the world’s third-biggest producer of Nike footwear and apparel, after Vietnam and China, with 40 factories in the country employing 171,000 workers producing Nike goods.

Who makes Nike shoes 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).

What are the issues that Nike workers in Indonesia face?

The company’s own inquiries also found workers at the two factories were subjected to “serious and egregious” physical and verbal abuse, including the punishment of forcing workers to stand in the sun, said Hannah Jones, a Nike executive who oversees the company’s efforts to improve working conditions.

How does Nike affect Indonesia?

Over the years, Nike expanded its factories across the country. They found labor in almost inexhaustible supply especially in poor urban areas around the island of Java. Tapping this labor, they trained and raised the industrial efficiency of Indonesian workers.

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How much do Nike workers make 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.

Who is the CEO of Nike?

How much do Nikes cost 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.

Are sweatshops illegal in Indonesia?

Indonesia: low wages in the textile and garment industry undermine workers’ rights. … The minimum wage is legally fixed and resolved at the district level, ranging from US $80 to US $200 per month. However, the minimum wage is not applied in many factories, which request exemption for financial reasons.

Why is Nike bad?

Nike has faced criticism for contracting overseas sweatshop factories to manufacture its products. The factories have been found to violate minimum wage and overtime laws. The so-called Nike sweatshop factories are mainly located in China, Vietnam, and Indonesia. However, Nike denies supporting sweatshop labor.

Why is Nike unethical?

Nike received Ethical Consumer’s worst rating for its cotton sourcing policy, because it lacks a clear approach to use of pesticides and herbicides. Cotton accounts for 12.34% of all insecticide sales and 3.94% of herbicide sales, even though cotton covers only 2.78% of global arable land.

Why is Indonesia the world’s third largest exporter of Nike goods?

Indonesia is the third biggest producer of Nike goods, after Vietnam and China, with 40 factories employing 171,000 people. Indonesian factory workers are among the lowest paid in Asia. … Nike’s code of conduct says it expects its suppliers to pay workers “at least the minimum wage required by country law”.

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What is the minimum wage in Indonesia?

Minimum Wages in Indonesia is expected to reach 4.42 IDR Million/Month by the end of 2021, according to Trading Economics global macro models and analysts expectations.

How does Nike address abuse?

Helping contract factories protect workers’ health and safety: Nike helps its contract factories put in place comprehensive HSE (Health, Safety and Environment) management systems which focus on the prevention, identification and elimination of hazards and risks to workers, expecting its contract factories to perform …