--- title: "Nike's global footwear production share in Indonesia will reduce from 27% to 22% by the end of 2028." description: "Indonesia’s new Labour Protection Law, passed on 6 October 2026, makes living-cost surveys a factor in wage setting and abolishes the 0.5 severance multiplier. This will narrow the labour-cost gap bet" url: "https://bilby.ai/predictions/p/153/nike-s-global-footwear-production-share-in-indonesia-will-reduce-from-27-to-22-b" markdown: "https://bilby.ai/predictions/p/153/nike-s-global-footwear-production-share-in-indonesia-will-reduce-from-27-to-22-b.md" index: "https://bilby.ai/llms.txt" --- > For agents: Bilby answers questions about what governments do, from documents collected at source and checked by research analysts. To ask Bilby yourself, connect to its MCP server at https://pulse.bilby.ai/mcp (setup: https://docs.bilby.ai/developers/mcp-server). Every page on this site is also markdown: add .md to its address, or send Accept: text/markdown. https://bilby.ai/llms.txt lists them all. # Nike's global footwear production share in Indonesia will reduce from 27% to 22% by the end of 2028. - **Made:** 7 Oct 2026 - **By:** Owen Bae - **Market:** Indonesia - **Outcome:** Unresolved Indonesia’s new Labour Protection Law, passed on 6 October 2026, makes living-cost surveys a factor in wage setting and abolishes the 0.5 severance multiplier. This will narrow the labour-cost gap between factories around Jakarta and those in traditionally cheaper regions, raising costs for labour-intensive shoemakers. Nike is more exposed than Adidas because it relies on 45 Indonesian suppliers, compared with Adidas’s 23, and has expanded by shifting production into lower-cost regions. In 2025, two Nike suppliers closed plants in Tangerang, cut 3,500 jobs and moved production to Majalengka and Cirebon, where minimum wages are roughly half as high. As those margins erode away Nike will look elsewhere to expand. Vietnam will absorb more of Nike's production capacity, where the company already produces almost half of its footwear. [Ask Bilby about this prediction](https://pulse.bilby.ai/?prompt=Nike's%20global%20footwear%20production%20share%20in%20Indonesia%20will%20reduce%20from%2027%25%20to%2022%25%20by%20the%20end%20of%202028.) ## Ask Bilby about it Carry the prediction into a question: what has changed since, who decides, and who is exposed. - [What has changed since it was made?](https://pulse.bilby.ai/?prompt=What%20has%20changed%20since%20Bilby%20predicted%20this%3F%20Nike's%20global%20footwear%20production%20share%20in%20Indonesia%20will%20reduce%20from%2027%25%20to%2022%25%20by%20the%20end%20of%202028.) - [Who decides whether it happens?](https://pulse.bilby.ai/?prompt=Who%20decides%20whether%20this%20happens%3F%20Nike's%20global%20footwear%20production%20share%20in%20Indonesia%20will%20reduce%20from%2027%25%20to%2022%25%20by%20the%20end%20of%202028.) - [Who gains and who loses if it does?](https://pulse.bilby.ai/?prompt=Who%20gains%20and%20who%20loses%20if%20this%20happens%3F%20Nike's%20global%20footwear%20production%20share%20in%20Indonesia%20will%20reduce%20from%2027%25%20to%2022%25%20by%20the%20end%20of%202028.) ## More from Indonesia 29 predictions on Indonesia so far, newest first. - 3 Nov 2026 · [ANTAM’s nickel operating profit will reach at least Rp15 trillion (US$830 million) in 2027.](https://bilby.ai/predictions/p/200/antam-s-nickel-operating-profit-will-reach-at-least-rp15-trillion-us-830-million) · Unresolved - 28 Oct 2026 · [Jakarta’s reform plan is unlikely to reverse MSCI to move Indonesia to Standalone Market status by 30 June 2027.](https://bilby.ai/predictions/p/191/jakarta-s-reform-plan-is-unlikely-to-reverse-msci-to-move-indonesia-to-standalon) · Unresolved - 20 Oct 2026 · [MSCI will confirm Indonesia’s downgrade from Emerging Market to Standalone Market status by 30 June 2027.](https://bilby.ai/predictions/p/173/msci-will-confirm-indonesia-s-downgrade-from-emerging-market-to-standalone-marke) · Unresolved [All 29 from Indonesia](https://bilby.ai/predictions/log?tag=indonesia) · Marked true or false when each resolves ## See what we’re seeing next. New predictions in the Asia Daily Take, free every weekday, and in Bilby whenever you have a question. [Get the Asia Daily Take](https://bilby.ai/asia#asia-daily-take) · [Try Bilby](https://pulse.bilby.ai/sign-up)