Ministry of Industry Denies Relocation and Layoff Rumours at Two Automotive Component Firms
The Ministry of Industry has denied reports regarding the planned relocation of production facilities by two automotive component industries from Indonesia to Vietnam. The two companies are confirmed to be operating normally and are in fact contributing to national exports.
Ministry spokesperson Febri Hendri Antoni Arif stated on Tuesday that Minister of Industry Agus Gumiwang Kartasasmita had ordered the Directorate General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE) on Sunday, 21 June 2026, to investigate the truth of the information concerning the relocation of production by PT. S and PT. J, as well as layoffs at the two industries.
“On Sunday afternoon, 21 June 2026, the Minister of Industry ordered the Director General of ILMATE to investigate the truth of the information regarding the relocation of automotive component industry companies from Indonesia to Vietnam. Considering the caution and sensitivity of this issue for the industry and foreign investment in Indonesia’s automotive sector, we are today conveying the field findings to the public,” he said, as quoted on Wednesday, 24 June 2026.
He explained that PT. J and PT. S, or PT. JAI and PT. SAI, are both located in East Java Province, with PT. JAI situated in Pasuruan Regency and PT. SAI in Mojokerto Regency. Both companies are also recorded as actively submitting industrial activity reports through the National Industrial Information System (SIINas) routinely in accordance with the provisions of Minister of Industry Regulation No. 13 of 2025.
The Ministry of Industry received confirmation from the companies that the two firms, PT. JAI and PT. SAI, which appeared in the news regarding the relocation of production facilities from Indonesia to Vietnam and layoffs, are indeed the companies in question. The production facilities of PT. JAI and PT. SAI are still operating normally in Indonesia and continue to carry out production activities as usual.
He stated that there are currently no plans to relocate the production facilities of the two industrial companies from Indonesia to Vietnam. Likewise, regarding the layoff issue, the companies also stated that there has been no workforce reduction or layoffs at their production facilities.
“Based on the results of this information investigation, we from the Ministry of Industry temporarily conclude that, first, there is no plan to relocate the production facilities of PT. JAI and PT. SAI from Indonesia to Vietnam. And second, there is no workforce reduction or layoffs at the two industrial companies,” Febri stated.