The Chairman of the Indonesian Employers Association (Apindo), Shinta Kamdani, has responded to discussions regarding the potential relocation of some automotive component production from Indonesia to Vietnam. Kamdani acknowledged the issue requires attention and further examination. She indicated the need for a comprehensive evaluation of the factors driving this potential shift, including cost competitiveness and investment climate. Apindo is proposing a series of measures to retain and attract investment in the Indonesian automotive sector. These proposals aim to improve the overall business environment and address concerns related to production costs. The organization intends to engage in dialogue with the government to implement strategies that will safeguard Indonesia’s position as a key manufacturing hub. Further details of the proposals are expected to be released soon.
