Nike Is Moving Jobs to Low-Wage Regions of Indonesia

7 hours ago

Nike advocates for a living wage for its workers, but its expansion in Indonesia has undermined this goal by growing in low-wage regions.
Employment in Nike's supply chain in Indonesia has shifted from higher-wage areas like Jakarta to lower-wage regions such as Central and West Java.
Workers in Central Java earn significantly less than the estimated living wage, often relying on second jobs to make ends meet.
Nike's shift to lower-wage regions may have saved the company approximately $200 million in labor costs in 2025 alone.
Labor conditions in Central Java are worse than in Jakarta, with less union representation and higher rates of workplace abuses, including gender-based violence.
Nike defends its expansion into Central Java as part of economic growth and development, but critics argue it prioritizes cost reduction over worker welfare.
Workers in Jakarta fear demanding higher wages due to the risk of job losses as companies move production to cheaper regions.
Nike's suppliers in Indonesia often pay workers the minimum wage or slightly more, falling short of the company's global average claim of nearly double the minimum wage.
Labor advocates criticize Nike's living wage pledges as too flexible and lacking meaningful enforcement.
Despite some progress, issues like harassment and poor working conditions persist in Central Java factories supplying Nike.

Hasty Briefsbeta