Ministry of Industry Denies Automotive Component Plant Relocation to Vietnam

The Ministry of Industry (Kemenperin) has denied reports of two automotive component companies relocating from Indonesia to Vietnam. The government has confirmed that the production facilities of both companies are still operating normally and that no layoffs have occurred. Ministry spokesperson Febri Hendri Antoni Arief stated that Minister of Industry Agus Gumiwang Kartasasmita ordered an immediate investigation into the information circulating regarding the relocation and workforce reductions at two automotive component firms in East Java. “On Sunday (21 June 2026), the Minister of Industry instructed the Director General of ILMATE to investigate the truth of the information about the relocation of automotive component industries from Indonesia to Vietnam,” Febri said in a statement on Wednesday (24/6/2026). The investigation found that PT JAI and PT SAI, the companies mentioned in the reports, are still carrying out production activities as usual. Both companies also continue to actively submit industrial activity reports through the National Industrial Information System (SIINas). “Based on the results of this investigation, the Ministry of Industry has tentatively concluded that, firstly, there is no plan to relocate the production facilities of PT JAI and PT SAI from Indonesia to Vietnam. And secondly, there has been no reduction in manpower or layoffs at the two industrial companies,” Febri stated. According to the ministry, the relocation issue had caused concern among buyers and suppliers of the two companies. Several business partners even questioned the continuity of contracts and the companies’ future commitments. “The massive reporting on the relocation and layoffs in the two East Java industries has impacted the automotive industry supply chain and the manufacturing investment climate in Indonesia, especially for these two component companies,” Febri said.