Indonesia

Indonesia’s manufacturing sector generates around a fifth of the country’s Gross Domestic Product (GDP). The garment and textile industries represent just 5.8% of the value derived from the sector. However, textiles and textile products are the third largest contributor to export figures of all non-oil and gas industrial products, and constitute a small but significant proportion of global export production. The garment and textile industry is also an important source of formal sector employment for Indonesian women, who accounted for 49.75% of the population in 2013. Manufacturing as a whole is estimated to have contributed approximately 21.5% of GDP in 2015. Some USD 10.5 billion, or 5.8% of the value derived from manufacturing in that year, came from the garment and textile industries.

The vast majority of textile and garment companies are located on the island of Java. The garment industry is concentrated in West Java, Greater Jakarta and Batam. Sex-differentiated data on employment in the textile, garment and footwear sectors are not publicly available, but women comprised a significant proportion of the 2,543,260 workers employed in the industry in 2013. Only 41% of textile workers and just 15% of garment workers are employed in large or medium enterprises.

In the past years, there has been an establishment of a range of private regulatory initiatives including Better Work Indonesia, the Freedom of Association Protocol, and the Asia Floor Wage, all of which seek to leverage international brands’ concern about reputational risk to improve conditions in Indonesia’s garment factories.

In the Indonesian context, there is work to be done on several elements of the Fair Wear Foundation Code. Most urgent among these is more systematic implementation of laws already in place on freedom of association, payment of a living wage, excessive working hours, and legally binding employment. The need to update and better implement legislation on occupational health and safety is also pressing. Finally, it is clear that women workers, who constitute the majority of production workers in the garment industry, bear the brunt of a failure to uphold core labour standards in addition to gender-specific burdens associated with reproductive health and workplace harassment.

In 2016, FWF set up and trained a local audit and training team. In addition to this, it met with relevant stakeholders to better familiarise itself with the local garment industry and assessed how to best work together with initiatives that contribute to the improvement of working conditions.

For more information about FWF’s work in Indonesia contact Kees Gootjes.

Indicators

  1. FWF active: yes
  2. Complaints handler: yes
  3. Audit teams: yes
  4. GDP per capita (PPP$): 3.712
  5. Human development rank: 108
  6. Gender rel. development rank: 93
  7. Minimum wage (PPP$): 142
  8. Population below $2/day: --
  9. Income equality rank (Gini): 39.4
  10. Child labour (5-15 years): 4 %
  11. Trade union situation

Resources

Resources related to Indonesia

Indonesia 2016 Country Study

indonesia COUNTRY STUDY for 2016 A significant contributor to Indo date: 22/03/2017Read more

Indonesia Complaint Jack Wolfskin July 2013

Final REPORT COMPLAINT IN Indonesia AT FACTORY SUPPLYING jack wol date: 16/12/2011Read more

Indonesia Complaint Jack Wolfskin March 2016

final REPORT COMPLAINT IN Indonesia AT FACTORY SUPPLYING jack wolf date: 15/02/2015Read more

Indonesia Complaint Jack Wolfskin March 2016 Bahasa

FinaL REPORT COMPLAINT IN Indonesia AT FACTORY SUPPLYING Jack wolf date: 15/02/2015Read more

Projects

Projects in Indonesia

Workplace Education Programme

FWF members aim for more than participating in auditing. FWF’s Workplace Education Programme (WEP) provides short, targeted onsite training for managers, supervisors and workers. The training aims to raise awareness about the various labour standards and effective methods for communicating about problems and resolving disputes. Managers, supervisors and workers also learn about FWF’s complaints mechanism.

Go to WEP

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