Indonesia
The Republic of Indonesia│Republik Indonesia
Indonesia is at a crossroads in 2021. Not only is it facing the biggest change to its labour laws in 17 years via the “Omnibus Law”, but also considerable pressure in addressing the garment industry’s concerns amid the COVID-19 pandemic. Balancing the need for economic growth while protecting labour rights and reducing inequality presents a challenge, and this is not immune to global shifts. Despite investing in quality products, adopting good practices and shifting to greater automation, Indonesian garment factories still struggle to remain internationally competitive.
As of 2021, the total export revenue industry was USD 13 billion, accounting for almost 6 per cent of the country's total export. A total of 5,000 registered large and medium companies and 500,000 SMEs in garment/textile industry produces and sell for export and employ a total of 3.7 million workers.
Minimum wage: Range from IDR 2,036,947.00 (USD 132) to IDR 5,067,381.00 (USD 329) (2024) (on USD/IDR rate as of 1 January 2024; USD 1 = IDR 15390.00)
Population
Total
277,534,123 (2023)
Gross Domestic Product
GDP per Capita (constant USD, thousand)
$4,073.6 (2022)
Human Development Index Ranking
HDI Rank (out of 191 countries)
112 (2022)
Garment/Textile Workers
Number of workers in the garment/textile sector
3.7 million (2023)
Women Workers in the Garment/Textile Industry
Percentage of women workers employed in the garment/textile industry
58.7% (2023)
Number of Garment/Textile Factories
Number of factories in the garment/textile industry
505,000 (mostly SMEs)
Garment/Textile Industry Exports
(USD$ billion)
USD 13.02 billion (2021)
Garment/Textile Industry Size
Percentage of total exports
5.62% (2021)
Minimum Wage
Monthly minimum wage in USD
USD 132 - USD 329 (2024)
Key Garment/Textile Export Markets
Top five countries ($USD value exported and subsequent percentage)
| Country | Percentage of Exports |
|---|---|
| United States | 39.53% |
| Japan | 8.61% |
| China | 4.73% |
| South Korea | 4.24% |
| Germany | 3.42% |
Government Entities
Government agencies actively involved in the garment/textile industry
- Ministry of Industry
- Ministry of Manpower and Transmigration (MOMT)
Worker Organizations
Trade unions, Union federations, and other worker organizations
- Confederation of National Workers Union (KSPN)
- Federations of Textile, Clothing and Leather Unions of the Confederation of All Indonesian Workers Union (FSP-TSK KSPSI)
- Confederation of Indonesian Trade Union (FSP-TSK KSPI)
- Federation of Garment, Handcraft, Textile and Industrial Centers of the Indonesian Labour Union (FSB-Garteks KSBSI)
Employer/Industry Associations and Chambers of Commerce
Employers and industry related associations, private sectors associations and chambers of commerce
- The Indonesian Textile Association (API)
- Indonesian Employers' Association (APINDO)
- Indonesian Footwear Association (Aprisindo)
Development Agencies/ International Organizations
National and international development organizations working within the garment/textile industry
- Better Work Indonesia (BWI)
Civil Society Organizations/ Non-governmental Organizations
Organizations working within the garment/textile industry
- Fair Wear Foundation
Sources of data provided
- Population: https://population.un.org/dataportal/data/indicators/49/locations/360/start/2023/end/2023/table/
- GDP Per Capita: https://data.worldbank.org/indicator/NY.GDP.PCAP.KD
- HDI: https://hdr.undp.org/data-center/specific-country-data#/countries/IDN
- Garment / Textile Workers: https://www.giiresearch.com/report/cri1339032-indonesia-garment-manufacturing-industry-research.html
- Women Workers in the Garment /Textile Industry: https://www.ilo.org/infostories/en-GB/Stories/discrimination/garment-gender#the-global-garment-industry-a-bird%E2%80%99s-eye-view-(1
- Number of Garment / Textile Factories: https://asianinsiders.com/2023/10/24/indonesias-textile-and-garment-sector-is-growing-with-an-increasing-population-and-greater-export-demand/#:~:text=there%20are%20approximately%205%2C000%20registered%20large%20and%20medium%20textile%20and%20garment%20companies%20in%20operation%20in%202023%2C%20with%20an%20estimated%20further%20active%20500%2C000%20small%20and%20micro%20enterprises.
- Garment / Textile Industry Export: https://wits.worldbank.org/CountryProfile/en/Country/IDN/Year/2021/TradeFlow/Export/Partner/all/Product/50-63_TextCloth
- Garment / Textile Industry Size: https://wits.worldbank.org/CountryProfile/en/Country/IDN/Year/2021/TradeFlow/Export/Partner/all/Product/50-63_TextCloth
- Minimum Wage: https://wageindicator.org/salary/minimum-wage/indonesia (Range from IDR 2,036,947.00 (USD 132) to IDR 5,067,381.00 (USD 329))
- Key Garment / Textile Export Markets: https://wits.worldbank.org/CountryProfile/en/Country/IDN/Year/2021/TradeFlow/Export/Partner/all/Product/50-63_TextCloth
What's going on in Indonesia?
We speak to Amalia Falah Alam, Country Representative and Complaint Handler for Fair Wear in Indonesia, about the risks and violations of labour rights in garment factories in Indonesia but also about the clear signs of increasing awareness of sustainability in the sector.
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