Jakarta -
KSPI President and Presidential Advisor on Labor and Worker Welfare, Said Iqbal stated that two Japanese automotive component factories namely PT JAI in Pasuruan and PT SAI in Mojokerto which are part of Yazaki Group will not be relocating their production massively to Vietnam.
Said stated that initially the two producers planned to relocate approximately 50% of their production lines to Vietnam. However, due to dialogue between management and labor unions, the plan was successfully reduced so that only about three to five production lines were eventually relocated.
"What was planned as massive, the 50% did not happen. Only 3 to 5 lines, production lines that were relocated to Vietnam," said Said Iqbal in a press conference held online, Sunday (28/6/2026).
As for any reduction in employees, Said Iqbal stated that this condition would occur naturally through the non-renewal of some employment contracts that expire, not through mass layoffs. He learned this based on the company's business plan until 2030 which was explained to him.
"By 2030, if there is a reduction in the number of employees by 2030, it would be more, what's it called, naturally. That is, contract employees whose contracts end, then they would not renew their contracts," he said.
"However, if there is an increase in market demand, especially in the Toyota group, which is usually number one followed by Toyota group and other car companies, then it's possible that contract employee renewal would still be done. But by 2030, it's just natural reduction. Well, maybe around 20% to 30% would decrease by 2030," he added.
(acd/acd)
