Kemenperin denies relocation of 2 auto parts factories to Vietnam

The Ministry of Industry denied reports that two automotive parts factories in East Java would move production to Vietnam. Kemenperin spokesman Febri Hendri Antoni Arif said field checks found PT JAI in Pasuruan and PT SAI in Mojokerto still operating normally, with no relocation of facilities and no reduction in workers. The checks were ordered by Industry Minister Agus Gumiwang Kartasasmita on 21 June 2026 after reports of potential layoffs emerged. Earlier, Said Iqbal said about 4.000 workers could be affected by plans to move production lines at the two companies, which were said to be Japan-based. Kemenperin said the reports had already disrupted production and demand, and had prompted questions from buyers and suppliers about whether contracts would continue.