Ministry Denies Industrial Relocation Rumors After Manufacturing Scare Rocks Markets

JAKARTA, Investortrust.id — The Indonesian government has moved quickly to contain a market-moving manufacturing scare, issuing a definitive denial that two key automotive component producers are pulling their operations out of the country. Ministry of Industry spokesperson Febri Hendri Antoni Arief confirmed on Wednesday that PT SAI and PT JAI, both major players based in East Java, have no intention of shifting their facilities to Vietnam.

The rumors were a significant source of volatility, threatening the stability of Indonesia’s manufacturing sector. With both companies operating as 100% export-oriented suppliers, their potential departure would have created major bottlenecks in the global automotive supply chain. By clarifying that production remains robust and stable, the government has moved to preserve investor confidence in Indonesia’s industrial manufacturing sector, which currently serves as a critical hub for international markets.

Ministry officials launched an immediate investigation into the rumors following reports that suggested thousands of workers would face layoffs. After cross-referencing industry data and meeting with corporate management, the Ministry of Industry confirmed that both firms are fully operational and remain compliant with all national industrial regulations.

"Based on our investigation, we conclude that there is no plan to relocate PT JAI and PT SAI facilities from Indonesia to Vietnam, and there are no staff reductions or layoffs at these industrial companies," stated Febri Hendri Antoni Arief in a written release on Wednesday.

Operational Stability Confirmed

The panic sparked by the false reports had tangible impacts on the ground, with international buyers and suppliers contacting the companies to express alarm and demand updates on contract fulfillment. Ministry officials noted that the noise created by the misinformation risked harming the overall climate for manufacturing investment in East Java.

Financially, the two firms represent a significant commitment to the Indonesian market. With a combined investment exceeding $119.5 million, the companies are deep-rooted in the regional economy. Their production performance remains strong, with PT SAI producing 1.2 million units of automotive components in the first quarter of 2026, while PT JAI produced approximately 1.6 million units during the same period.

As Indonesia continues its push to position itself as a powerhouse in the regional automotive landscape, the government is highlighting these companies as vital examples of long-term investment. By definitively closing the door on the relocation rumors, the Ministry aims to redirect the focus back to industrial growth and the country's strategic role within the global automotive supply chain.