Meeting Japanese Automotive Giants, Ministry of Industry Ready to Evaluate Incentives

KatadataOTO – The Ministry of Industry met with several Japanese automotive manufacturers such as Suzuki and Toyota. The meeting was held to find solutions for the challenging market conditions in Indonesia.

During a meeting with Osamu Suzuki, Chairman of Suzuki Motor Corporation, it was noted that there has been a significant decline in sales of light commercial vehicles in Indonesia. This situation immediately caught the attention of Agus Gumiwang Kartasasmita, the Minister of Industry.

He emphasized that various policies will be evaluated to restimulate demand for commercial vehicles. This includes purchases by local governments and fiscal incentives for MSMEs, which affect public purchasing power.

Meanwhile, Toyota also revealed that additional incentives are needed for sales to grow. Especially for cars that are produced locally, particularly for hybrid technology vehicles.

Photo : Carscoops

Currently, several Toyota hybrid variants have achieved a Local Content Level (TKDN) of over 40 percent. However, they proposed that regulations for electrified vehicles be more flexible to attract investment and accelerate the adoption of environmentally friendly technology.

“We will study this request, because in principle, we want to build a national automotive industry that is strong and also globally competitive,” said Agus Gumiwang Kartasasmita in his official statement (13/07).

He also confirmed that the Low Cost Green Car (LCGC) incentive program will be continued until 2031. This aims to maintain vehicle affordability for the public and support a gradual transition to electrification.

“The LCGC program has proven successful in increasing vehicle ownership among the public and supporting the national automotive industry. Therefore, we will continue the incentives for LCGC until 2031,” he affirmed.

This decision is expected to provide long-term certainty for principals and industry players to continue producing and developing energy-efficient vehicles domestically.

The Ministry of Industry also emphasized that it will continue to collaborate with automotive principals. Especially since the vehicle market in Indonesia is very large and has a positive impact on the community.

“The automotive industry has absorbed a large number of workers. We must work together to ensure there are no shocks in this sector,” he concluded.