Indonesia's Car Exports Must Be Maintained to Prevent Layoffs

KatadataOTO – Gaikindo (Association of Indonesian Automotive Industries) recently attended a Working Committee Hearing with Commission VI of the DPR. On that occasion, the challenges of the automotive industry were also discussed.

Car exports are said to be one of the mainstays amidst uncertain conditions. However, referring to Gaikindo data, the figures actually decreased in 2024.

It was mentioned that car exports in 2023 were at 505,134 units. However, this achievement dropped to 472,194 units, even lower than the 2022 figure of 473,602 units.

On the other hand, fully imported or CBU (Completely Built Up) cars have actually been increasing from 2020 to 2024.

Photo : Toyota

Then, the number of cars produced also experienced a decline, from 1,395,717 units in 2023 to 1,196,464 units throughout 2024.

In fact, Gaikindo revealed that the production capacity in Indonesia is still quite large at 2,108,465 units as of 2022. Then, there are about 1.5 million workers involved in the process.

For that reason, he hopes that car exports can still be maintained in the range of 400 thousand in 2025.

“We need to pay attention in these difficult conditions, we do not want layoffs (Termination of Employment) to occur,” said Kukuh Kumara, Secretary General at the Hearing, quoted Friday (11/07).

The presence of several four-wheeled vehicle manufacturers from China seems to have contributed to the increase in car import figures in Indonesia.

Brands like BYD (Build Your Dreams) are currently one of the best-selling producers in the country thanks to the help of import incentives from the government.

This policy allows BYD to bring in electric cars through imports while still receiving incentives like CKD (Completely Knocked Down) cars.

However, there is one requirement that must be met, which is an investment commitment in the form of factory construction.

Besides submitting a bank guarantee, the brand is also required to produce according to the number that has been imported. If they fail to meet the quota, the producer can be fined.