Indonesia Says Automotive Firms' Move to Vietnam Has Been Delayed

TEMPO.CO, Jakarta - State Secretary Minister Prasetyo Hadi announced that the exit plan of two auto parts manufacturers from Indonesia has been delayed. It was reported earlier that two companies located in Pasuruan and Mojokerto, East Java, were planning to move some of their production lines to Vietnam.

The move risked the employment termination of around 4,000 workers. 

"It was reported by colleagues who went down to the field that the plan is postponed temporarily, meaning there will be no relocation to Vietnam," said Prasetyo after attending a Layoff Mitigation Task Force meeting at the parliament complex in Jakarta on Friday, June 26, 2026.

According to Prasetyo, each company has its own set of problems. In this case, the relocation plan came from the investors. 

"The two automotive companies are relocating since the investors decided to cut down or move their investment," said the Gerindra Party politician.

As the chair of the layoff task force, Prasetyo said he's grateful for the suspension of the relocation plan. He said the task force has an obligation to mitigate the issue of layoffs as early as possible. 

"We are tasked with detecting, mitigating, and finding a way out of emerging issues as early as possible," he said.

Quoted by Antara, the two Japan-based automotive component companies are referred to by the initials PT J and PT S. The information was conveyed by the Presidential Special Advisor on Labor and Workers' Welfare, Said Iqbal, who was reluctant to disclose the specific identities of the companies.

When met during the National Working Meeting of the Confederation of Indonesian Labor Unions (KSPI) 2026 in Jakarta, Iqbal mentioned that there are around 4,000 workers in Pasuruan and Mojokerto facing layoff risk.

"The layoff potential is quite significant, but if we can convince them, the principals in Japan, the possibility of moving to Vietnam will not happen," said Said Iqbal on Tuesday, as quoted from Antara.

Read: Indonesia Has Yet to Confirm Automotive Incentives in 2026

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