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View all search resultsMajor Japanese auto factories set sights on relocation from Indonesia
Said Iqbal, special presidential advisor for employment and workers’ welfare, stated those companies located in Pasuruan and Mojokerto, East Java, referred to them only by the initials PT J and PT S.
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A man stands next to the chassis of an electric vehicle on July 18 at the Gaikindo Indonesia International Auto Show (GIIAS) 2024, which ran until July 28 at the Indonesia Convention Exhibition in Tangerang, Banten. (AFP/Bay Ismoyo)
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wo major Japanese automotive component manufacturers operating in East Java are considering relocating part of their production to Vietnam and could carry out large-scale layoffs in Indonesia as they shift their focus toward electric vehicles, according to Said Iqbal, special presidential advisor for employment and workers’ welfare.
The companies are reviewing plans to move production to countries deemed more competitive for electric vehicle (EV) development, potentially affecting thousands of workers, Said, who also serves as president of the Confederation of Indonesian Trade Unions (KSPI) and chairman of the Labor Party, stated on Sunday.
“Their parent company in Japan plan to relocate production to countries that are considered more productive while diversifying their product lines. They will focus on EV, and that development is being carried out in Vietnam, not Indonesia,” Said told an online press conference, as quoted by Kompas.com.
The issue ultimately reflects broader questions surrounding the country’s electric vehicle policy framework.
Said added that those companies believe EV manufacturing in Indonesia is less competitive, while Vietnam has rolled out policies that are more supportive of EV investment.
Said declined to identify the companies but said they are major automotive component manufacturers located in Pasuruan and Mojokerto, East Java, referred to them only by the initials PT J and PT S.
“There are two giant automotive component companies in Pasuruan and Mojokerto. I cannot disclose their names yet, but thousands of workers could be affected by layoffs,” he said.
