Nike’s Sourcing in Indonesia

Nike recently celebrated thirty years of working with footwear, apparel and equipment suppliers in Indonesia. To mark the occasion, Nike hosted an event with stakeholders from government, industry and business, including the Indonesia Minister of Manpower and Transmigration, Minister of Trade, Minister of Industry and Chairman of Indonesia Investment Coordinating Board. Hanif Dhakiri, Minister of Manpower and Transmigration provided remarks, speaking about the positive impact Nike’s sourcing presence has had on Indonesia’s economy and on job creation.
 

Nike’s global supply chain is currently made up of 41 countries, including Indonesia. For the past 10 years, we have been reducing the number of contract factories we work with and investing in suppliers who are positioned to grow with us for the long term. Through this process, we reduced our global supply chain from 785 contract factories in fiscal year 2013 to 527 today. While this business strategy has an impact on the regions where we source product, including Indonesia, it does not represent a shift in our commitment in the country. Our contract factories are listed publicly on Nike’s Manufacturing Map, which is updated quarterly.

 

We are sensitive to the potential impacts of factory exits on workers. We work closely with each supplier group to conduct a responsible exit, providing early notice and a clear ramp down schedule, which enables the supplier with an opportunity to find new buyers. If a supplier ultimately decides to reduce their workforce, we require that they fulfill their obligations to workers in accordance with country law, the Nike Code of Conduct and Code Leadership Standards.

 

We look forward to continuing to do business in Indonesia and working with a variety of stakeholders across sectors.