JAKARTA - The Ministry of Industry (Kemenperin) has denied that two automotive component industry companies, namely PT KAI and PT SAI, will relocate their factories from Indonesia to Vietnam.
Ministry of Industry spokesman Febri Hendri Antoni Arief confirmed that the two factories were still operating normally.
He also denied that there was a termination of employment (PHK) at the two automotive companies as a result of the relocation of factories to Vietnam.
Febri said, the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita had ordered the Director General of the Metal, Machinery, Transportation Equipment, and Electronics Industry (Dirjen ILMATE) to investigate the truth of the issue on Sunday, June 21.
"Considering the prudence and sensitivity of this issue for the industry and foreign investment in the Indonesian automotive industry sector, today we present the findings to the public," said Febri in a written statement, Wednesday, June 24.
He also conveyed that there were several findings based on the investigation that had been carried out by the Director General of ILMATE.
First, PT JAI and PT SAI are both located in the province of East Java.
PT JAI is located in Pasuruan Regency, while PT SAI is located in Mojokerto Regency.
The two companies are also listed as actively submitting industry activity reports through the National Industrial Information System (SIINas) regularly in accordance with the applicable provisions in the Ministry of Industry Decree 13 of 2025.
Second, the Ministry of Industry and Trade received confirmation from the company that the two industrial companies that appeared in the news about the relocation of production facilities from Indonesia to Vietnam and layoffs were suspected of being the two companies.
Third, the production facilities of PT JAI and PT SAI are still operating normally in Indonesia and continue to carry out production activities as usual. There are no plans to relocate the factory to Vietnam.
Likewise with the issue of layoffs, the company also stated that there was no reduction in manpower or layoffs at their production facilities.
"The Ministry of Industry temporarily concluded that there was no plan to relocate the production facilities of PT JAI and PT SAI from Indonesia to Vietnam. And secondly, there was no reduction in labor or layoffs at the two industrial companies," he said.
According to Febri, the issue that emerged has caused disruptions on the production and demand sides of PT SAI and PT JAI. In fact, the buyers and suppliers of the two companies were surprised and asked for the truth of the news, as well as the commitment of the two companies to their contracts in the future.
"The massive reporting of relocation and layoffs in two industries in East Java has had an impact on the automotive industry supply chain and the investment climate of Indonesian manufacturing, especially in these two automotive component industry companies," said Febri.
It is known that PT SAI and PT JAI are automotive component industry companies with investment values of more than IDR 1.9 trillion.
The value of the investment is considered to reflect the long-term commitment of both companies in supporting the development of the national manufacturing industry as well as strengthening the automotive industry supply chain in Indonesia.
"The realized investment value shows the company's confidence and commitment to continue developing its business and investment in Indonesia," he said.
In terms of production performance, both companies also still show good industrial activity.
In the first quarter of 2026, PT SAI produced 1.2 million components, while PT JAI produced around 1.6 million components. All production of the two companies is intended for the export market.
"With an export orientation of 100 percent, both companies are part of the global supply chain of the automotive industry and contribute to the performance of Indonesian manufacturing exports," explained Febri.
Furthermore, Febri said, the Minister of Industry had instructed all levels to continue to monitor the performance of the industry periodically and follow up all information related to factory closures and layoffs.
"The Minister of Industry has ordered his staff to continue to monitor the performance of all industries and take quick and measurable mitigation steps for industries that experience disruptions in the supply chain and demand," he concluded.
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