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.

In 2018, the total export revenue industry was US$7.8 billion, accounting for 1.14 per cent of the country's gross domestic product (GDP). A total of 344 large garment factories produces and sell for export and employ a total of 530,000 workers.

Population

Total

276,361,788 (2021)

Gross Domestic Product

GDP per Capita (constant USD, thousand)

3,855.8 (2021)

Human Development Index Ranking

HDI Rank (out of 191 countries)

114 (2021)

Garment/Textile Workers

Number of workers in the garment/textile sector

530,000 (2018)

Women Workers in the Garment/Textile Industry

Percentage of women workers employed in the garment/textile industry

59% (2018)

Number of Garment/Textile Factories

Number of factories in the garment/textile industry

344 (2018)

Garment/Textile Industry Exports

(USD$ billion)

USD 12.8 billion (2020)

Garment/Textile Industry Size

Percentage of total exports

7.65% (2020)

Key Garment/Textile Export Markets

Top five countries ($USD value exported and subsequent percentage)

Country Percentage of Exports
United States 36.28%
Japan 10.98%
China 5.7%
South Korea 4.89%
Germany 4.03%

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

  1. Population: Population, total | Data (worldbank.org) 
  2. GDP Per Capita: GDP per capita (constant 2015 US$) | Data (worldbank.org)
  3. HDI: Country Insights | Human Development Reports (undp.org) 
  4. Garment / Textile Workers: EXPORTING FACTORIES ONLY: Figure has been provided to Better Work Indonesia (BWI) by API as part of an analysis of the garment sector’s future, being developed with the support of BWI. These figures were reached by comparing BWI, API, KOGA and BPS data and are, in the opinion of APINDO/API, a reliable overall figure for the garment export sector (for companies with more than 100 workers).
  5. Women Workers in the Garment /Textile Industry: Labour force statistics (LFS) ILOSTAT Employment by sex and economic activity – ISIC level 2 (thousands) – Annual. Employment ISIC codes 13-15. https://ilostat.ilo.org/data/# Female / Total
  6. Number of Garment / Textile Factories: Figure has been provided to Better Work Indonesia (BWI) by API as part of an analysis of the garment sector’s future, being developed with the support of BWI. These figures were reached by comparing BWI, API, KOGA and BPS data and are, in the opinion of APINDO/API, a reliable overall figure for the garment export sector (for companies with more than 100 workers)
  7. Garment / Textile Industry Export: https://wits.worldbank.org/CountryProfile/en/Country/IDN/Year/2019/TradeFlow/Export/Partner/all/Product/50-63_TextCloth
  8. Garment / Textile Industry Size: https://wits.worldbank.org/CountryProfile/en/Country/IDN/Year/2019/TradeFlow/Export/Partner/all/Product/50-63_TextCloth
  9. Key Garment / Textile Export Markets: Indonesia Textiles and Clothing Exports by country & region 2020 | WITS Data (worldbank.org)

    *Textiles and Clothing Exports in 2020 

What's going on in Indonesia?

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.

News on Indonesia


How the labour movement helped defeat pro-business legislation in India and Indonesia

"When it comes to workers, the Omnibus Law has several concerning provisions. It makes it easier for companies to terminate employment, reduces the maximum statutory periods for fixed-term contracts, ...

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Garment factory relocated to Central Java, difficulty finding workers

"A total of 1,800 workers are needed to support the relocation of [PT Binabusana Internusa] garment factory from Jakarta. Unfortunately, until now, there are still many vacancies." [Ed's note: see ent ...

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'Factory reject' fashion becomes big business in Indonesia

"In accordance with the process, goods produced must go through a Quality Control (QC) process. Production results that pass QC will be sent to the client [brand], while products that do not pass or a ...

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