The Ministry of Industry stated that Indonesia's footwear and garment industries remain a top choice for global companies, as evidenced by major brands like Adidas and Nike entrusting local factories with production. Currently, Indonesia contributes nearly 30% of Adidas and Nike’s total global factory workforce, showcasing the country’s competitive edge in manufacturing. This shift has led to Indonesia gaining a larger share of production previously allocated to China, Vietnam, and Cambodia. In 2024 alone, the footwear sector recruited 7,644 new workers, a 3% increase from the previous year, bringing the total workforce to 271,774. Meanwhile, the garment industry saw even higher growth, adding 10,013 new workers, a 30% annual increase, reaching 36,409 employees.
Most Adidas and Nike supplier factories in Indonesia are foreign-owned, primarily by investors from China, South Korea, and Taiwan, who continue expanding their operations. Companies like Ontide (South Korea) and Korrun (Vietnam) have significantly increased their workforce, while Adidas is exploring new manufacturing partnerships with local firms such as PT Adonia and PT Aroma. The sector’s export performance remains strong, with footwear and garment exports reaching USD 11.2 billion in 2024, a 9.8% increase from the previous year. The U.S. remains the largest market, absorbing 60% of Indonesia’s garment exports, while footwear exports to the U.S. surged 24.6% year-over-year to USD 2.9 billion. The Ministry of Industry sees this growth as an opportunity to strengthen Indonesia’s position in the global supply chain by fostering a favorable investment climate, enhancing workforce skills, and improving industrial infrastructure.
