Relocation of Automotive Component Factories to Vietnam Postponed
Minister of State Secretary Prasetyo Hadi has announced the postponement of plans by two automotive component companies in Pasuruan and Mojokerto, East Java, to relocate. The companies had initially planned to move part of their production lines to Vietnam, a decision that would have resulted in the termination of employment for 4,000 workers.
“It was reported by colleagues who went to the field that the relocation plan can be postponed for the time being, meaning there will be no move to Vietnam,” Prasetyo said after attending a meeting of the Layoff Mitigation Task Force at the House of Representatives in Jakarta on Friday, 26 June 2026.
Prasetyo noted that each company faces different problems. In this case, the relocation plan emerged due to a decision by the investor. “Because the two automotive companies are moving because the principal or investor decided to reduce or relocate their investment,” said the Gerindra Party politician.
As Chairman of the Layoff Mitigation Task Force, he expressed gratitude that the relocation plan could be temporarily cancelled. Prasetyo believes the task force has a duty to carry out early mitigation and find solutions to layoff issues, such as the one above.
“This is one of the tasks of the Layoff Mitigation Task Force team: to try as early as possible to detect, mitigate, and find solutions to emerging problems,” he said.
According to Antara, the two automotive component companies are identified by the initials PT J and PT S, with a parent company in Japan. This information was conveyed by the President’s Special Advisor for Manpower and Labour Welfare, Said Iqbal, who declined to explicitly name the companies.
Speaking on the sidelines of the 2026 National Working Meeting of the Confederation of Indonesian Trade Unions (KSPI) in Jakarta, Iqbal said around 4,000 workers in Pasuruan and Mojokerto were threatened with layoffs. According to Iqbal, the relocation plan could be cancelled because the procedure takes a considerable amount of time.
“The potential for layoffs is indeed quite large, but if we can convince them, the principal in Japan, the possibility of moving to Vietnam will not be carried out,” Said Iqbal said on Tuesday, 23 June 2026, as quoted by Antara.