Indonesia Delays Automotive Firms' Vietnam Relocation Plan

Indonesia has temporarily halted the planned relocation of two automotive component companies from East Java to Vietnam, a move that had threatened the jobs of 4,000 workers. Minister Secretary of State Prasetyo Hadi announced the delay on Friday, stating that the companies' principals or investors had decided to reduce or move their investments.

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The relocation plan can be temporarily postponed, meaning the move to Vietnam will not happen.

Prasetyo, who also chairs the task force for mitigating layoffs, expressed relief that the relocation could be postponed. He emphasized the task force's duty to detect and resolve labor issues as early as possible, viewing the postponement as a temporary success in their mission. The companies, identified by initials PT J and PT S with Japanese parent companies, were reportedly considering the move due to investor decisions.

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These two automotive companies are moving because the principals or investors decided they want to reduce or move their investments.

Said Iqbal, Special Advisor to the President for Labor Affairs and Workers' Welfare, confirmed the potential for significant layoffs but noted that convincing the Japanese principals could prevent the move. He indicated that relocation procedures are time-consuming, suggesting this might have contributed to the delay. The task force's efforts are focused on finding solutions to prevent job losses and stabilize the workforce.

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This is one of the tasks of the Mitigating Layoff Task Force to detect, mitigate, and find solutions to emerging problems as early as possible.