On automotive industry departures, Foreign Ministry says: More are still entering

The Indonesian Ministry of Foreign Affairs has stated that the issue of two foreign automotive companies leaving Indonesia does not reflect the national investment climate, given that the country is still receiving various new investments from abroad. “Because at the same time, we still see a lot of new investment coming to Indonesia from countries such as Japan, South Korea, and China,” said Santo Darmosumarto, Director General of Asia Pacific and Africa at the Ministry of Foreign Affairs, on Wednesday. Speaking after the 2026 China-Indonesia Media and Think Tank Forum in Jakarta, Santo conveyed that a particular company’s business decision to move from Indonesia cannot be directly interpreted as signalling a change in the national business climate. He said that even if a company leaves, the decision could be the result of corporate strategic planning or internal industry shifts. The Director General also highlighted several new investment commitments successfully signed following President Prabowo Subianto’s recent visits to a number of countries, such as South Korea and Japan. “Although some are leaving, it does not mean they are leaving specifically because of the climate conditions in Indonesia; it could also be due to their internal strategic planning,” Santo said. Meanwhile, the Ministry of Industry has dismissed the issue of two automotive component industry production facilities relocating from Indonesia to Vietnam and confirmed that both companies continue to operate normally and contribute to national exports. Ministry of Industry spokesperson Febri Hendri Antoni Arif stated on Tuesday that Minister of Industry Agus Gumiwang Kartasasmita had directly ordered his staff to investigate the truth of the relocation information concerning the two companies, namely PT JAI and PT SAI. Based on the ministry’s investigation, it was found that there are currently no plans regarding the relocation of PT JAI and PT SAI’s production facilities from Indonesia to Vietnam. “Secondly, there has been no workforce reduction or layoffs at the two industrial companies,” Febri added. Both companies, domiciled in East Java, are also recorded as actively submitting industrial activity reports through the National Industrial Information System (SIINas), in accordance with the provisions of Minister of Industry Regulation No. 13 of 2025.