Nike’s Sourcing in Indonesia

This year, Nike is celebrating thirty years of working with footwear, apparel and equipment suppliers in Indonesia. Today, Nike sources from more than 30 contract suppliers across the country, making it our third largest sourcing country. Indonesia is and will remain a critical part of our global sourcing strategy across our manufacturing landscape.

 

Nike’s global supply chain is currently made up of 42 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 542 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.