Initials Revealed of Two Japanese Automotive Factories in Indonesia Threatening to Relocate to Vietnam
President of the Confederation of Indonesian Trade Unions (KSPI) and President of the Labour Party, who also serves as Special Adviser to the President of Indonesia on Employment and Labour Welfare, Said Iqbal, has stated that a wave of layoff threats is looming in Indonesia. This is attributed to the global impact of the war involving the United States, Israel, and Iran.
In addition to PT Pakerin in Mojokerto and PT Fengtai in Bandung, two automotive component companies in East Java, specifically in Pasuruan and Mojokerto, with the initials PT J and PT S, are threatening to do the same to thousands of workers.
‘Initial information indicates that the prolonged war situation has led the Japanese principals to plan relocating their investment to another country and focus more on electric vehicle development in Vietnam,’ said Said Iqbal in a written statement on Monday (22/6/2026).
To anticipate this, several steps will be taken. One is to negotiate with the two companies. ‘The labour unions will negotiate with the companies to convince them not to move to Vietnam. From there, I will communicate with the House of Representatives and the President to push for policies that support the development of the electric vehicle industry in Indonesia,’ he explained.
Said Iqbal emphasised that the strategy is to visit locations with potential layoffs directly, rather than waiting for the problem to escalate. ‘I advocate a strategy of not waiting, but going. The government together with labour unions, especially KSPI, has already carried out initial mitigation to ensure there are no layoffs,’ he said.
He cited the case of PT Amos in Cilincing, North Jakarta, as an example. ‘At PT Amos, a South Korean garment company, I came with the Director General of Industrial Relations. The workers’ BPJS contributions had been suspended, but after we came, the BPJS had to be reactivated and is now active again,’ he stated.
He also explained that the Job Loss Insurance (JKP) process is underway. ‘The next day, the Deputy Minister of Manpower came and met the company along with the Police Employment Desk. I also met the National Police Chief and the company owner. Currently, there is a breakthrough. The company is willing to pay severance and the amount is almost agreed upon,’ he said.
According to Said Iqbal, this mitigation pattern will facilitate the resolution of employment issues. ‘Mitigation like this facilitates efforts to save the industry while ensuring workers remain employed and their rights are protected,’ he concluded.