4 Reasons why you should produce your fashion jewelry in Indonesia Instead of elsewhere.
Updated: Dec 20, 2018
Indonesia have been a global hub for handmade jewelry production for decades and they´ve gotten really good at it. Besides favorable production costs and vast possibilities, partnering up with Indonesian producers often prove to be a better cultural fit.
Here are 4 reasons for looking to Indonesia for your next production partner in fashion jewelry.
1. Cost of handicraft production
Indonesia is a low-cost environment to produce in and in particular handmade items can generally be produced at very competitive prices. Production costs can be as favorable as half the price of Chinese producers when producing items necessary of handicraft
As such, Indonesian producers are able to provide wholesalers and retailers with favorable prices providing higher margins in the later levels of the supply chain.
2. Labor ethics
Of course, there is a reason for this favorable production environment and generally many Indonesian suppliers offer good working conditions. Still, as a socially conscious business you need to proactively ask your suppliers how they are trying to raise the living standards of their employees.
The obvious questions are whether production and sub-suppliers uphold the standard put forward of organizations such as Fairtrade and if a fair salary is provided compared to the supplier’s competitors. What you can also ask is whether employees are offered time for religious holidays (which there are many of in Indonesia), whether health security is provided (often in the shape of 0 interest loans that the company offers).
A general expection of the production facilities can often also give a good idea of the social conditions of the supplier. If you are a big customer, ask the supplier for a plane ticket to come by and see for yourself.
3. Skills and craft
Creating a 5-string bracelet with 5 different beads in less than 5 minutes is not a skill you learn overnight (View the video at the bottom of this page). Due to the heavy handicraft involved in preparing items for religious purposes that Indonesians learn from childhood, as well as the use of handicraft items for tourism, Indonesia is in front when acquiring skilled handicraft production employees.
In particular Bali has a strong handicraft tradition and high supply of handicraft artisans.
These factors contribute to a high level of quality and cost-effective lead times.
Handmade items have a longer life dependency and lower error margin, as each piece is being tested while created by the artisan. This is a fair element for consideration when considering whether to handmake in Indonesia or machine manufacture in China or India.
4. Good cultural fit
Many years of neighboring Australia on one side and the Asian continent on the other has shortened the cultural distance between Indonesia and the countries that traditionally produce here. Such countries include US, many European countries, Australia and Asian countries such as china, South Korea and japan. This understanding has only improved in
Bali, as it is a primary tourist destination for many of the above areas of the world.
If you are a first-time buyer, this might not be your main concern but if you are experienced in producing in Asia, you understand the massive value of being on the same level with your suppliers.