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.

Country Profile

Population

273,524,000 (2020)

Gross Domestic Product

constant USD

4,450 (2019)

Human Development Index Ranking

HDI (out of 189 countries)

107 (2019)

Industry

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

Number of Garment/Textile Factories

Number of factories in the garment/textile industry

344 (2018)

Garment/Textile Industry Exports

(USD$ billion)

7.8 (2018)

Garment/Textile Industry Size

Percentage of total exports

5.74 (2018)

Key Garment/Textile Export Markets

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

Country Percentage of Exports
United States 35.5%
Japan 9.5%
China 7.5%
Germany 4.8%
South Korea 4.1%
Stakeholders

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)
Confederation of National Workers Union (KSPN)

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

FairWear Foundation

Sustainability

Gender

Gender-related law, policy, and initiatives

5.7% of female workforce employed in the garment sector, compared to 2.5% male. 59% of the workers in the garment sector are female and 41% are male. The median gender pay gap in the garment sector is 0.3%. ,

Sources

Sources of data provided

  1. Population: https://population.un.org/wpp/DataQuery/
  2. GDP Per Capita: https://data.worldbank.org/indicator/NY.GDP.PCAP.KD?name_desc=true
  3. HDI: http://hdr.undp.org/en/countries
  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:  Badan Pusat Statistik (BPS) 2018, Statistik Perdagangan Luar Negeri Indonesia Ekspor Menurut Kode ISIC 2016-2017, e-book, viewed 22 July 2018, https://www.bps.go.id/publication/2018/07/02/e8383056b240ee274ff4113c/statistik-perdagangan-luar-negeri-indonesia-ekspor-menurut-kode-isic-2016----2017.html
  8. https://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx?IF_ActivePath=P,15912&sCS_ChosenLang=en  2019 Merchandise trade matrix – exports of individual economies in thousands United States dollars, annual (SITC codes 26, 65, 84, 85): Total of Garment (Textiles and Apparel) and Footwear categories; Percentage of Garment and Footwear categories per country divided by total Garment and Footwear categories, Total countries.
  9. Garment / Textile Industry Size: Indonesia’s National Statistic Agency (2018)
  10. Key Garment / Textile Export Markets
  11. Environment - These resources are thematic related resources on a rotating roster.
  12. Social & Labour - These resources are thematic related resources on a rotating roster.
  13. Gender: ILO calculation based on labour force survey in Indonesia 2019 https://www.ilo.org/surveyLib/index.php/catalog/2875

News on Indonesia


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Resources on Indonesia

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Business Resilience Guides: Guides for garment factories to build resilience during and after COVID-19

The ILO provides a series of six action-oriented guides for garment factories in Asia to navigate the COVID-19 pandemic and to build business resilience. This fact sheet provides an introduction to the series.

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Arron Goldman  | August 08, 2021

Executive summary: Moving the Needle: Gender equality and decent work in Asia’s garment sector

The report sheds light on the importance of addressing gender equality in the garment sector, while also providing ILO constituents and industry stakeholders with a holistic roadmap for action that places decent work and social justice at the heart of the post-pandemic business...

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Arron Goldman  | September 03, 2021

Quy định có hiệu lực hay không? Đánh giá tác động môi trường của ngành dệt may tại Bangladesh, Campuchia, Indonesia và Việt Nam

Executive Summary: Effective regulations? Environmental impact assessment in the textile and garment sector in Bangladesh, Cambodia, Indonesia and Viet Nam

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Efek Riak Rantai Pasok: Bagaimana COVID-19 memengaruhipara pekerja dan pabrik sektor garmen di Asia dan Pasifik

The supply chain ripple effect: How COVID-19 is affecting garment workers and factories in Asia and the Pacific

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Piece rate pay and working conditions in the export garment sector

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GIZ Admin  | May 17, 2021

ASEAN in transformation - Part 2: The future of jobs at risk of automation

This report seeks to understand the implication of computerized technology for five Asian economies - Cambodia, Indonesia, the Philippines, Thailand and Viet Nam - by assessing types of occupations that have a high probability of being automated

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The Asia Garment Hub  | May 18, 2021

Fact Sheet ILO Decent Work in the Garment Sector Supply Chains in Asia

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Holden Hao  | December 29, 2020