## Nike's Indonesian Expansion Undermines 'Living Wage' Pledge, Shifts Production to Low-Wage Regions
Nike publicly states that its global workforce of over 1 million should earn enough to support their families, cover living expenses, and have discretionary income. However, an analysis by ProPublica and The Oregonian/OregonLive reveals that the company's expansion in Indonesia over the last decade has directly contradicted this commitment. Nike's supply chain has dramatically increased employment in Indonesian regions where the minimum wage is below the estimated living wage, while simultaneously shrinking in areas that pay closer to a living wage. This internal shift within a country allows for significant labor cost savings, replacing the older model of moving production between countries. Nike's suppliers employ 280,000 people in Indonesia, its second-largest production hub. From 2015 onward, these suppliers eliminated approximately 36,000 jobs in higher-wage areas like Jakarta, where the monthly minimum is around $300. Concurrently, production and employment expanded in lower-wage regions, undermining the company's stated goal of ensuring workers earn a decent living.
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- **Source**: 
- **Sector**: The Office
- **Tags**: nike, labor, indonesia, minimum wage, supply chain
- **Credibility**: unverified
- **Published**: 2026-03-06 17:13:48
- **ID**: 2701
- **URL**: https://whisperx.ai/en/intel/2701