While we have limited business with Tainan Enterprises, Gap Inc. has engaged the Tainan executive team on the ongoing freedom of association issues at PT Tainan Enterprises Indonesia. We have encouraged them to participate in constructive dialogue to reach a prompt resolution. We have explicitly reiterated Gap Inc.’s Code of Vendor Conduct standards related to freedom of association and non-interference, compliance with which is a condition of doing business with Gap Inc. We have also encouraged PT Tainan to establish a positive, constructive relationship with all relevant unions, including Garteks, which includes ensuring that Garteks is invited to join worker-management bi-partite committee meetings to drive improvements in social dialogue.

We have shared our expectation with PT Tainan that they follow the Ministry of Manpower’s recommendation on this case once it is issued, and they have committed to doing so. We will continue to closely monitor the situation and will engage all relevant stakeholders until it is resolved.