Toyota and Suzuki Promise Industry Minister No Mass Layoffs

KatadataOTO – New car sales in Indonesia have not yet shown positive performance. Until the first semester of 2025, it is still far from expectations.

According to data from the Association of Indonesian Automotive Industries (Gaikindo), the total retail sales from January to June 2025 were only 390,467 units.

If observed, the figure above has dropped by 9.7 percent compared to the same period last year.

Meanwhile, for distribution from factories to dealers (wholesales), it decreased by 8.6 percent from the previous 410,020 units to 374,740 units in the first semester of 2025.

Photo : PT SIS

If this condition continues, it is not impossible that the four-wheeled vehicle industry will face a very bad situation.

The worst is the threat of bankruptcy, ultimately leading to layoffs (PHK), as in other industries in the country.

Seeing this, Agus Gumiwang, Minister of Industry (Menperin), is trying to find a way to prevent bad things from happening.

He admitted that three Japanese car manufacturers have committed not to carry out layoffs and not to raise vehicle selling prices.

They are Toyota, Daihatsu, and Suzuki, who have made a promise to the aide of President Prabowo Subianto.

“This is important to maintain public purchasing power and employment in the automotive sector,” said Agus Gumiwang on the official website of the Ministry of Industry, Sunday (13/07).

Furthermore, the Minister of Industry admitted to being concerned about potential turmoil in the national automotive sector, especially if there is a surge in vehicle prices or a reduction in the workforce.

Moreover, the presence of automotive manufacturers is considered very important. Because it is one of the pillars of domestic industry.

Agus also stated that his request was positively received by the top officials of Toyota, Suzuki, and Daihatsu.

The manufacturers from the Land of the Rising Sun are said to understand the government's concerns and have stated their commitment to keeping their product prices stable.

In addition, Suzuki, Daihatsu, and Toyota also want to retain their workforce amidst various global challenges.

“We appreciate their commitment. This is a concrete step in supporting the stability of the automotive industry in Indonesia,” the Minister of Industry affirmed.

Photo : KatadataOTO

On the other hand, the government is also trying to keep the domestic automotive market attractive and competitive throughout 2025.

In addition, President Prabowo and his ministers are trying various ways to boost new car sales in the country.

One of them is through deregulation and providing fiscal incentives to encourage the investment climate in the automotive sector.