Panasonic Indonesia Remains Key Export Base Despite Global Layoffs
Main Takeaways
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JAKARTA, investortrust.id – Amid global workforce reductions by Panasonic Holdings, the Indonesian government has confirmed that the electronics giant will not be laying off employees in its Indonesian operations. Instead, the country remains a key manufacturing and export base for the Japanese multinational across Southeast Asia.
The confirmation came from Industry Ministry spokesperson Febri Hendri Antoni Arief on Monday, May 12, 2025, in Jakarta. He emphasized that Panasonic’s local operations continue to play a vital role in supplying products to more than 80 countries, reinforcing Indonesia’s status as a globally competitive electronics hub.
“The layoffs at Panasonic Holdings have no impact on the company’s operations in Indonesia. Our factories here serve as an export base to over 80 countries, demonstrating the strength and competitiveness of our electronics industry,” said Febri, as quoted by Antara.
However, Febri acknowledged that the national electronics industry is under pressure. Capacity utilization has dropped to 50.64% in the first quarter of 2025—significantly below the pre-pandemic level of 75.6%.
“This is a wake-up call for all industry players and employees to continue adapting and transforming in order to remain competitive,” he added.
Amid intensifying global competition, Febri stressed the need for transformation in technology, improved productivity, and operational efficiency as essential strategies for long-term survival.
To address the low utilization rates and bolster the domestic electronics sector, the government is focusing on protecting the local market from surging imports while maintaining investor confidence and attracting new investments.
“Indonesia has a major advantage as one of the largest domestic markets in the region, and the government fully supports the industry through policies such as the Local Content Requirement (TKDN),” Febri said, referring to a policy aimed at boosting the use of domestically produced components in manufacturing.
He also highlighted Southeast Asia’s growing role as a global economic engine, noting the strategic importance of maintaining industrial stability and enhancing competitiveness.
As part of its strategy, the Industry Ministry is implementing a range of initiatives to raise productivity in the electronics sector. These include offering fiscal incentives, workforce training programs, and strengthening high-tech manufacturing ecosystems.
“We are optimistic that with the right policy support and strong collaboration between industry players and the government, Indonesia’s electronics sector will continue to grow and make a meaningful contribution to the national economy,” Febri concluded.