Ministry of Industry Spokesperson Denies Rumours of Two Companies Relocating to Vietnam

The Ministry of Industry (Kemenperin) has firmly denied rumours that two automotive component companies are relocating their production facilities from Indonesia to Vietnam. The government has confirmed that both companies continue to operate normally and contribute to national manufacturing exports. Ministry spokesperson Febri Hendri Antoni Arif stated that Minister of Industry Agus Gumiwang Kartasasmita had ordered an immediate investigation into the alleged relocation and reports of layoffs (PHK) at the two firms. “On Sunday afternoon, 21 June 2026, the Minister instructed the Director General of ILMATE to verify the truth of the information regarding the relocation of automotive component industries from Indonesia to Vietnam,” Febri said on Tuesday (23/6). “Given the caution and sensitivity of this issue for the industry and foreign investment in Indonesia’s automotive sector, we are presenting the field findings to the public today.” The investigation identified the companies as PT JAI, located in Pasuruan Regency, and PT SAI, situated in Mojokerto Regency, East Java. Both firms are actively submitting industrial activity reports through the National Industrial Information System (SIINas) in accordance with regulations. The Ministry has also received direct confirmation from the companies that their production facilities are operating normally in Indonesia and there are no plans to relocate factories to Vietnam. “Based on the verification of this information, we from the Ministry of Industry have provisionally concluded that, first, there is no plan to relocate the production facilities of PT JAI and PT SAI from Indonesia to Vietnam. And second, there has been no reduction in workforce or layoffs at the two industrial companies,” Febri stated. He noted that the circulating rumours have instead caused disruption to the companies’ operations, with several buyers and suppliers questioning the veracity of the information and the firms’ commitment to ongoing contracts. “The massive reporting on relocation and layoffs at these two industries in East Java has impacted the automotive supply chain and the manufacturing investment climate in Indonesia, particularly for these two automotive component companies,” he said. The Ministry views both companies as having a long-term commitment to supporting the development of the national manufacturing industry and automotive supply chain. The two firms have realised significant investment, with a combined total exceeding Rp 1.9 trillion. “The realised investment value demonstrates the companies’ trust and commitment to continue developing their business and investments in Indonesia,” Febri added. He confirmed the Ministry will continue to monitor industry conditions regularly and implement mitigation measures for companies facing pressures on their supply chains or market demand. “The Minister has instructed his staff to continuously monitor the performance of all industries and to take swift and measured mitigation steps for industries experiencing disruptions in supply chains and demand,” Febri concluded.