Gaikindo and Ministry of Industry Discuss the Future of the New Car Market in 2026

KatadataOTO – The new car market situation in Indonesia in 2025 is sluggish. Even the sales target for this year had to be revised down to just 780 thousand units.

Based on the facts above, the Association of Indonesia Automotive Industries (Gaikindo) and the Ministry of Industry (Kemenperin) reportedly held a meeting.

“So regarding automotive policy, it is being formulated together with the government. Let's just wait and see what will be created, I should be in a meeting with Mr. Agus Gumiwang (Minister of Industry) right now,” said Jongkie Sugiarto, Chairman I of Gaikindo in North Jakarta, Wednesday (17/12).

Jongkie further stated that there are several things that are the focus of Gaikindo and the Ministry of Industry at the moment.

Photo: KatadataOTO

For example, the proposed automotive incentive for 2026. Whether it will focus on the Battery Electric Vehicle (BEV) segment or other vehicles.

“That's what we want to see, where the direction is heading. Will it still be BEVs or hybrids, so later in-depth studies related to localization must also be considered,” continued Jongkie.

Indeed, Jongkie did not deny that Gaikindo needs direction from the Ministry of Industry. So that it can determine the future direction of the nation's automotive industry.

Considering the situation next year is predicted to still be tough. So a special strategy is needed to get through 2026.

“In general, what will the future be like, otherwise we will not grow,” Jongkie affirmed.

Incentives Are Being Pursued

As previously reported by KatadataOTO, the Minister of Industry admitted that he will continue to fight for stimulus in 2026.

“This sector is a very important sector, too important for us to ignore, it is impossible for us to ignore,” said Agus on a different occasion.

According to Agus, the sustainability of the automotive industry is considered very important. Considering that this assistance has a large sustainable impact.

Therefore, a stimulus is needed in the 2026 period. Especially after experiencing a contraction or decline.

“The forward and backward linkages are extraordinary, the labor absorption is also extraordinarily large, the added value for the economy is also extraordinarily large,” added Agus.

Photo: Neta

The aide to President Prabowo Subianto emphasized that the Ministry of Industry will continue to try to propose government incentives or stimulus for the automotive sector.

Agus explained that the incentives being prepared cover the demand side. Then target the supply side.

“It is our responsibility, it would be wrong if we did not fight for it,” concluded Agus.