Two Japanese Automotive Factories Eye Move to Vietnam, Thousands of Workers Face Layoffs
Two Automotive Component Giants Ready to Leave Indonesia
Shocking news comes from the industrial world. Two Japanese automotive component companies located in Pasuruan and Mojokerto, East Java, are reportedly planning to move their production lines to Vietnam. If the plan is realized, thousands of laborers could face layoffs. DetikFinance
This information was first revealed by the Special Advisor to the President for Labor and Worker Welfare, Said Iqbal, in a virtual press conference on Sunday, June 21, 2026.
Said Iqbal declined to disclose the names of the two companies openly because negotiations are still ongoing. He only provided initials PT J and PT S. DetikFinance
Indonesia Loses Competitiveness to Vietnam in Electric Cars
According to Said, the parent companies in Japan are choosing to shift production because they want to focus on the development of electric vehicles. Electric car development in Indonesia is considered uncompetitive, while Vietnam is aggressively promoting electric vehicle industry policies. DetikFinance
Said explained that the two companies are part of a Japanese manufacturing group that is shifting its business focus to the production of electric vehicle components, followed by plans to move some production facilities from Indonesia to Vietnam. Investor
Said Iqbal Will Report Directly to Prabowo
As a mitigation step, Said Iqbal asked laborers affiliated with the Indonesian Metal Workers Federation (FSPMI) to negotiate first with the companies to convince the parent companies not to move to Vietnam. DetikFinance
Said also plans to report the developments of this case directly to President Prabowo Subianto, with copies to the Minister of State Secretary Prasetyo Hadi and the Deputy Speaker of the Indonesian House of Representatives Sufmi Dasco Ahmad. Investor
Said emphasized that the resolution of this issue lies at the government policy level, so it can only be decided after further discussion at the central government level with the DPR and other stakeholders. "Because this concerns policy, especially policy regarding electric cars," explained Said Iqbal. DetikFinance
