Factsheet Indonesia

Facts on Indonesia’s Garment Industry
Key statistics:
Population (2014): with 250,585,668 people1 it is the world’s fourth most populous country
Employment in garment industry: 1.3 million (2011)2 3
Garment % of GDP: 1.56% (2012)4 5
Garment % of export: 6% (2014);6 8.9% (2010)7
Value garment export: 12.1 billion USD (2011)8 (9.5 billion EUR)9
Percentage of the world market for garment: 2.9% (2014);10 1.7% (2005)11
Minimum wage (2014): 2,441,000 Indonesian rupiah (212 USD; 167 EUR)12 in Jakarta
Living wage calculation by Asia Floor Wage (2013): 4,048,226 rupiah (351 USD; 278 EUR)13

Background of Indonesia:
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Geography: Indonesia is a country in Southeast Asia and Oceania that consists of over 10,000 islands.

▪

Politics: Indonesia has a parliamentary democracy.

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History: In 1800 Indonesia became a Dutch colony after the Dutch East India Company was dissolved.
During World War II Japan took over Indonesia. Indonesia declared independence in 1945 and it officially reached independence in 1949.

http://worldpopulationreview.com/countries/indonesia-population/ http://www.gbgindonesia.com/en/manufacturing/article/2012/indonesia_s_garment_and_apparel_sector.php 3 http://www.abrmr.com/myfile/best_track/best_track_78218.pdf
4 http://www.thecropsite.com/reports/?id=1832
5 http://www.gbgindonesia.com/en/manufacturing/article/2012/indonesia_s_garment_and_apparel_sector.php
6 http://www.tradingeconomics.com/indonesia/exports
7 http://www.gbgindonesia.com/en/manufacturing/article/2011/overview_of_fibre_textiles_and_garments.php
8 http://www.gbgindonesia.com/en/manufacturing/article/2012/indonesia_s_garment_and_apparel_sector.php
9 http://www.xe.com/currencyconverter/convert/?Amount=12100000000&From=USD&To=EUR
1
2

10

http://www.bvv.cz/en/styl-kabo/news/the-indonesias-textile-industry/

http://www.textileworldasia.com/Issues/2006/November-December/Features/Country_Profile-Indonesia http://www.indonesia-investments.com/news/todays-headlines/24-indonesian-provinces-have-set-new-regionalminimum-wage-for-2014/item1314 13 http://www.xe.com/currencyconverter/convert/?Amount=352&From=USD&To=EUR
11
12

1

Lina Stotz

Factsheet Indonesia

▪

Economy: Indonesia’s economy is the 16th largest by nominal GDP.

Biggest issues in Indonesia’s garment industry:
→ Suppression of trade unions
→ Low wages

General economic data:
Producing factories, trading companies and retailers
Production
2,980 garment factories (2011);14 90% of the factories are located in Java.15 16
Trade
Retail

There are more than 170 foreign brands and companies active in Indonesia’s garment industry.17 Exports
The top export destinations for Indonesia’s garments and textiles are the US, Japan and Turkey; 18 aout half of the country’s garments and textiles are exported.19
Textile or Total exports Exports to US
Garments?
2015

Textiles and garments

% of total Exports to EU exports to US

% of total export to EU

19 billion USD
(expected)20
(15 billion
EUR)

http://www.gbgindonesia.com/en/manufacturing/article/2012/indonesia_s_garment_and_apparel_sector.php http://betterwork.org/indonesia/?page_id=45 16 http://www.nla.gov.au/openpublish/index.php/lmd/article/viewFile/1296/1583
17 http://www.ukessays.com/essays/economics/competitive-advantage-of-the-indonesian-textile-industry-economicsessay.php
14
15

18

http://fashionatingworld.com/new1-2/item/779-indonesia-hopes-for-higher-textile-exports.html

19

http://www.nla.gov.au/openpublish/index.php/lmd/article/viewFile/1296/1583

20 http://www.bvv.cz/en/styl-kabo/news/the-indonesias-textile-industry/

2

Lina Stotz

Factsheet Indonesia

2013

Textiles and garments

2011

Garments

2010

Textiles

2005

Textile and garments

12.68 billion
USD21 22(9.9 billion EUR)23

4.1 billion USD
(garments)24
(3.2 billion EUR)
3.9
billion 36%27 28
USD25
(3 billion 26
EUR)
11.32 billion
37.6%34
USD33
(9
billion EUR)
8.6
billion 3.1 billion 36%41
USD36
(6.7 USD38
(2.4
billion billion EUR)39
EUR)37
but other sources say 8.5