There is a perception that Indonesian workers have the highest wages in South East Asia, after China, but the reality is quite different. The minimum wage is legally fixed. However the minimum wage is not applied in many factories, which request exemption for financial reasons. Many also use second and third tier subcontractors. Workers are hired on a daily basis, and earn much less than the minimum wage, and far too little to cover their basic needs.

Big brands sourcing from Indonesia increasingly use suppliers that subcontract the work to factories that do not comply with legal labor standards.

The longer the supply chain, the worse the working conditions in the factories, and the more difficult for unions to reach workers and bargain for better conditions. The long supply chains undermine collective bargaining.

Wages are not the only issue: health and safety are not addressed properly. Factories fail to take measures to prevent the inhalation of dust and fiber.

Women workers in Indonesia are faced with many difficulties, including those forced on them by regulations. For example, they receive a lower tax cut when having a family compared to their male counterparts. The social situation also prevents them from fully engaging in trade union work.