4,000 Nike Workers Furloughed, Business Association Reveals the Reason

The Chairman of the Indonesian Footwear Association (Aprisindo), Anton Supit, has revealed the reason behind the furlough of approximately 4,000 workers at a Nike shoe factory in Bandung, West Java. Contrary to earlier information citing a delay in raw material supply as the cause for the temporary layoffs, Anton believes the situation is primarily triggered by weakening orders from the global market.

According to Anton, the national footwear industry is currently very dependent on export demand. Consequently, when the global economy slows, orders from international brands decline, impacting factory production activity. “So, the news about it being a raw material problem is not true,” Anton told CNBC Indonesia on Friday (19/6/2026).

He explained that the footwear industry shares characteristics with the garment industry, namely a heavy reliance on global market conditions. “Our footwear industry is an exporter to the global market. So, if the global market is very dependent on global conditions. If the economy declines, orders will certainly decline,” he said.

Anton noted that international brands currently implement a worldwide sourcing system, placing production in several countries, primarily China, Vietnam, and Indonesia. When orders decrease, companies will choose the most efficient production location. According to him, brand owners will place orders in locations that offer the best efficiency and profitability. Therefore, industrial competitiveness is a crucial factor in competing for global orders.

Previously, the President of the Confederation of Nusantara Trade Unions (KSPN), Ristadi, disclosed that around 4,000 workers at the Nike shoe factory in Bandung had been furloughed since 15 June 2026. Based on information received by KSPN, the condition was triggered by a delay in the supply of raw materials, which were previously supplied directly by Nike but later handed over to a third-party vendor, causing technical obstacles. The raw materials were estimated to become available only in July.

However, Anton refuted this claim. He stressed that the national footwear industry does not depend on raw material imports from the United States. “That’s not it. Especially the excuse of a raw material shortage from America, we in the shoe industry don’t import goods from America,” he asserted. He mentioned that most raw materials for footwear are sourced domestically or from other Asian countries like China and Vietnam.

Anton also clarified that the affected workers have not been terminated but are furloughed while waiting for demand to improve. “In this case, they are not laid off, but the workers are furloughed. So they are not working but are still being paid while waiting for orders to recover,” he said. He hopes the workers can return to work once orders pick up.

Amid global economic pressures, Anton believes the government and business players need to strengthen the national industry’s competitiveness so that Indonesia remains a prime investment and production destination compared to competitors like China and Vietnam. “Therefore, we must truly prepare ourselves by improving the investment climate so we are more competitive,” he said. He added that improvements should be made through legal certainty, policy consistency, and streamlined import and export processes.