The Indonesian Ministry of Industry has confirmed that the layoffs recently announced by Panasonic Holdings do not involve operations in Indonesia. According to Febri Hendri Antoni Arief, the Ministry’s spokesperson, the company's Indonesian operations remain stable and continue to play a vital role in the region.

“The layoffs at Panasonic Holdings have no impact on operations in Indonesia. Our plants are actually an export base to over 80 countries, demonstrating the strong competitiveness of the national electronics industry,” said Febri in Jakarta on Monday, May 12.

He emphasized Indonesia’s position as one of Panasonic’s key production bases in Southeast Asia.

Panasonic Indonesia Expands as Export Base to Over 80 Countries

Despite global pressures, Panasonic’s Indonesian facilities have continued to serve as a major manufacturing hub, exporting electronics products to more than 80 countries. This reflects the strength of Indonesia’s industrial capacity and the country's importance in global supply chains.

Febri underlined that Indonesia remains competitive and strategically significant in the electronics sector, especially in Southeast Asia.

Industry Utilization Drops to 50.64% in Q1 2025

The Ministry reported that the electronics industry in Indonesia is currently operating at 50.64% utilization as of the first quarter of 2025. This is a sharp decline from the 75.6% utilization rate before the COVID-19 pandemic.“Global competition in the electronics sector is intensifying. This is a reminder that technological transformation, productivity improvement, and operational efficiency are key to survival,” said Febri.

He called on industry players and workers to continue adapting and transforming to maintain competitiveness.

Government Focuses on Domestic Market and TKDN Policy

To address the current challenges in the sector, the government is prioritizing protection of the domestic market from imported electronics and aiming to increase utilization through local market support.

“Indonesia’s domestic market is one of the largest in the region, and the government fully supports industrial strengthening through the TKDN policy,” Febri stated.

The Ministry is also focused on retaining existing investments and attracting new ones to sustain and grow the electronics industry.

Kemenperin Supports Transformation Through Incentives and Training

As part of its strategic approach, the Ministry of Industry is implementing programs to boost productivity. These include providing incentives, conducting industrial workforce training, and strengthening the high-tech manufacturing ecosystem.

“We are optimistic that with the right policies and strong synergy between the industry and government, Indonesia’s electronics sector will continue to grow and contribute significantly to the national economy,” Febri said.

PHOTO: PANASONIC

This article was created with AI assistance.