Jakarta, huutoanland Indonesia
—
Car sales
Indonesia has faced stiff competition this year from neighboring Malaysia, which has sparked climate concerns
investment
in the future.However, the association has a different view on this matter.
Concerns about Indonesia’s automotive investment climate were previously raised by Toyota, as the number one car market leader in the country.
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According to this Japanese manufacturer, the Indonesian car market must be able to reach at least 800 thousand units this year to remain above Malaysia.If total car sales fall below this figure, Indonesia’s reputation as the largest market in the Southeast Asia region will be affected.
From there, the investment climate could be disrupted, there are even concerns that the country’s automotive ecosystem or investment could potentially go away.
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Meanwhile, the Association of Indonesian Automotive Industries (Gaikindo), as the main association that oversees dozens of Indonesian car brands, has revised its car sales target by the end of 2025 to only 780 thousand units.Initially, Gaikindo targeted 900 thousand car units to be sold this year.
Jongkie D Sugiarto, Chairman I of Gaikindo, said that even though car sales in Indonesia have receded or perhaps lost to Malaysia, this will not disrupt the investment that has been underway in the country.He believes that the current downward trend in car sales is only temporary.
“I don’t think he will leave, this is only temporary,” said Jongkie when contacted, Wednesday (17/12).
For him, the Indonesian domestic market remains promising, as evidenced by the current car ownership ratio.
“Our domestic market still has great potential. The population is 280 million, motor vehicle ownership is 99 units per 1000 people,” said Jongkie.
According to Jongkie, this potential is considered to be a factor in Indonesia not losing automotive investors, both now and in the future.
“It seems like they see it long into the future, decades into the future,” said Jongkie.
Malaysian vs Indonesian car sales
Launch
Carz Automedia
, new cars registered in Malaysia in November amounted to 77,876 units, slightly higher than Indonesian wholesalers, 74,252 units.
If reviewed on an annual basis, Malaysian car sales for the 11 months of 2025 will amount to 720 thousand units, while Indonesia will only reach 710,084 units.
Conventional cars still contributed a lot to demand in Malaysia with 65,688 registrations, or accounting for 84.3 percent of all cars sold in November.
Indonesian car sales during 2025 will indeed be difficult to increase, with the main cause being weak people’s purchasing power.On the other hand, this result hit Indonesia hard, considering that Malaysia has a much smaller population.
Currently Indonesia has a population of 280 million people, while Malaysia only has 39 million people.Malaysia has also set a sales target by the end of the year of 800 thousand units.
(ryh/dmi)
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