Indonesian Automotive Market Potentially Abandoned by Investors

KatadataOTO – The Indonesian automotive market is currently facing various challenges. Some parties even believe that the Gaikindo target of around 850 thousand units will not be achieved. 

In August 2025, car sales in Malaysia began to overtake Indonesia's achievements. At that time, retail figures (distribution from dealers to consumers) reached 73,041 units.

Meanwhile, in Indonesia during the same period, only 66,478 units were recorded.

Although cumulatively Indonesia's car sales figures are still higher than Malaysia's in the Southeast Asia region, this is considered to still require attention.

Photo : KatadataOTO

Toyota, as one of the domestic automotive manufacturers, believes that Indonesia must maintain the highest car sales figures in ASEAN.

“If we are later overtaken by Malaysia, investors will feel that the largest market is not in Indonesia,” said Bob Azam, Vice President Director of PT Toyota Motor Manufacturing Indonesia to KatadataOTO recently.

Indonesia can be said to be quite successful in attracting various investors, especially from China. This is supported by an incentive program from the government, including for imported electric cars.

The provision of these subsidies has proven successful in boosting the sales figures of electric cars from Chinese manufacturers.

Therefore, Bob revealed that incentives still play an important role in increasing four-wheeled vehicle sales.

In the end, the car sales report in Indonesia also becomes an attraction that convinces investors to invest for the long term.

“So, which sectors, if given incentives, can create (revenue) greater than the incentive itself. So that it doesn't burden the fiscal,” he asserted.

For your information, car sales in Indonesia experienced another decline in September 2025.

In retail terms, the figure was 62,723 units, down 4.20 percent from the previous month's achievement.

Photo : Suzuki

Indonesia's economic condition is considered not to have fully recovered. In first place, Toyota still holds on with 20,733 units.

Following after is Daihatsu with 11,390 units, then Suzuki successfully delivered 5,477 new car units to consumers.

Cumulatively, new car sales in Indonesia for the January-September 2025 period were 585,917 units. There is still a difference of about 200 thousand units to reach the target set by Gaikindo.