Airlangga Responds to Japanese Automotive Company Relocating to Vietnam

Coordinating Minister for Economic Affairs Airlangga Hartarto has spoken out regarding news that a Japanese automotive company plans to leave Indonesia and relocate to Vietnam. Airlangga stated that, despite such reports, foreign direct investment (FDI) into Indonesia is still flowing, especially into Special Economic Zones (KEK). “Investment is still moving, including into Indonesia. Several investments are still coming in,” Airlangga said during a press conference at his office in Jakarta on Monday (22/6/2026). Without specifically naming the companies set to invest in Special Economic Zones in the near future, Airlangga stressed that realisation will occur in the Gresik KEK (JIIPE) and the Bintan KEK. “For example, in the economic zone in East Java, at JIIPE, and also the economic zone on Bintan Island, the demand from industries wanting to invest is increasing,” Airlangga stated. “So indeed, we are receiving several development plans for these zones, both economic zones and industrial estates,” he emphasised. The news of a Japanese automotive industry’s planned departure from Indonesia to Vietnam was initially raised by Said Iqbal, President of the Confederation of Indonesian Trade Unions (KSPI) and Special Advisor to the President on Employment and Labour Welfare. He said the findings were obtained from monitoring conducted in Pasuruan and Mojokerto as part of mitigation efforts by the government and labour unions against the risk of layoffs (PHK) amidst global economic uncertainty. “In East Java, specifically in Pasuruan and Mojokerto, I also discovered a potential threat to two automotive component companies that employ thousands of workers,” Said said in an official statement, cited on Sunday (22/6/2026). He noted that initial information indicated that prolonged geopolitical conflict has influenced the investment strategy of the Japanese automotive principal. “Initial information suggests that the prolonged war situation has led the principal from Japan to plan moving its investment to another country and focus more on electric vehicle development in Vietnam,” he said. However, Said has not yet disclosed the identity of the company in question or the exact number of workers potentially affected. To prevent layoffs, KSPI plans to negotiate with the company to persuade it to maintain its business activities in Indonesia. “The labour union will negotiate with the company to convince them not to move to Vietnam. From there, I will communicate with the DPR and the President to push for policies that support the development of the electric vehicle industry in Indonesia,” Said stated.