Jakarta, huutoanland Indonesia
—
Ministry of Industry (
Ministry of Industry
) uncover sales
electric car
(EV) this year reached 69,146 units during January-October 2025. However, the majority, namely 73 percent or around 50,476 units, sold were imported Completely Built Up (CBU) products.
This large portion is said to provide added value and absorb labor for other countries, not in Indonesia.
On the other hand, locally produced vehicles, which account for the largest portion of the domestic automotive industry market, experienced a significant decline, which the Ministry of Industry said was far below the annual production amount.
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Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arief, said it would be wrong to say that the automotive industry is in strong condition based on that fact.
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“The sharp decline in sales of four-wheeled motorized vehicles far below production figures at a time when sales of imported EV vehicles are rising sharply is a fact that cannot be avoided,” said Febri in a press statement from the Ministry of Industry on Sunday (30/11).
Apart from that, Febri also said that there were many automotive exhibitions being held this year which was not an indication that the automotive industry was strong.According to him, indicators of Indonesia’s automotive strength can only be concluded based on production and sales data.
“The large number of automotive exhibitions in various places in Indonesia is also not a measure of the automotive industry being strong. On the contrary, the many automotive exhibitions are the industry’s efforts and struggle to maintain demand amidst falling domestic sales and at the same time protect its workers from layoffs,” he said.
Based on data from the Association of Indonesian Automotive Industries (Gaikindo), sales of new cars from January to October 2025 only reached 634,844 units.This is down 10.6 percent compared to the same period in 2024.
Need incentives
Febri said the Ministry of Industry views that the automotive industry needs incentives to turn things around.This incentive is also considered important to ensure market recovery and maintain the sustainability of the national automotive industry.
It is said that incentive policies are not only important for industry players, but also provide real benefits for society as consumers.According to him, incentives will create space for vehicle prices to decrease, improve market sentiment, and maintain people’s purchasing power, especially the middle class and first-time car buyers who are very sensitive to price changes.
“Even though the Ministry of Industry has not yet formulated the type, form and target of incentives/stimulus, the proposal will be aimed at the lower-middle class segment and will be based on the TKDN value,” said Febri.
The biggest drop in new car purchases at the moment is said to be in the entry segment, namely prices below IDR 200 million.This segment is said to have fallen 40 percent, while the low segment (Rp. 200 million – Rp. 400 million) has fallen 36 percent.Apart from that, commercial vehicles also fell by 23 percent.
These three segments target domestic consumers, especially the middle class, and are the largest production base in the country.
According to Febri, the simultaneous weakening of the market could have an impact on decreasing factory utilization, decreasing investment, and potentially threatening the sustainability of employment in the automotive industry and components sector.
“The absence of policy intervention will allow these pressures to deepen, and the effects could impact the structure of the industry as a whole,” he said.
(fea)
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