4,000 Workers in East Java Face Layoff Risk Amid Factory Relocation Plans

Presidential special advisor for manpower and worker welfare, Said Iqbal, has confirmed that negotiations are still underway between labour unions and management following the threat of mass layoffs affecting around 4,000 workers in East Java. The potential job losses stem from plans by two automotive component companies to shift their production lines from Indonesia to Vietnam.

Speaking on the sidelines of a national working meeting in Jakarta on Tuesday, Iqbal stated that the companies, identified only as PT J and PT S with Japanese parent firms, are considering the move within the next one to two years. He noted that while the initial figure of 4,000 affected workers was mentioned, it may be an overestimate, as management often cites high numbers during preliminary discussions. Iqbal expressed cautious optimism that the layoffs could be avoided if unions can persuade the Japanese principals to maintain their Indonesian operations.

Separately, Manpower Minister Yassierli said the government is prepared to mediate. He emphasised that each industrial dispute requires a tailored approach, ranging from encouraging bipartite negotiations to direct intervention with company management, and assured that the cases would be handled individually to find a middle ground.