Ministry of Manpower Denies Rumours of Two Japanese Automotive Firms Leaving Indonesia

The Ministry of Manpower (Kemenaker) has firmly dismissed rumours regarding the planned departure of two Japanese automotive component companies operating in East Java. The investment relocation issue had previously sparked concerns about a potential wave of mass layoffs.

Deputy Minister of Manpower Afriansyah Noor stated that to date, there has been no official report or valid information concerning the relocation plan. He confirmed that the circulating news about the Japanese companies intending to move their production base to another country is untrue.

“The issue about a Japanese company moving to another country is not true. There has been no information or report to us,” Afriansyah Noor told Media Indonesia on Monday (22/6).

Previously, the rumour regarding the potential exit of the two companies, located in Pasuruan and Mojokerto, was spread by the President of the Confederation of Indonesian Workers Unions (KSPI) and Labour Party President, Said Iqbal. Initial information suggested that due to the war situation, the two companies planned to relocate their investment to Vietnam to focus on electric vehicle development.

However, Afriansyah emphasised that relocating industrial assets already built up on a large scale in Indonesia is not an easy matter. Based on direct monitoring in the field, the current condition of the national automotive industry is actually showing a positive and stable trend.

“It is indeed just a rumour. I know for certain, I visited Toyota, Hyundai, and Daihatsu; they are stable, their demand is stable, there is no turmoil whatsoever. Hopefully, this will not happen as rumoured,” he asserted.

The government continues to monitor developments in the manufacturing industry sector, particularly automotive, to ensure the investment climate remains conducive and worker protection is maintained amidst global economic dynamics.