Toyota Hopes Indonesia Can Become the Largest Market in ASEAN

KatadataOTO – Toyota Indonesia hopes that car sales in the country can still exceed 800,000 units. This number is considered important to maintain the largest automotive market in Southeast Asia.

If this position is lost, it could have a negative potential for the country's industry in the future.

“If the number 1 market in Southeast Asia is no longer in Indonesia, there are concerns that the ecosystem will move. Especially since other countries are providing many conveniences, such as Vietnam, which has lowered its VAT from 10 to 8 percent,” said Bob Azam, Vice President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN).

In addition, the Malaysian government is also said to have provided incentives to the industry since the Covid-19 pandemic. This program has successfully made people interested in purchasing new cars.

Photo : KatadataOTO

“Meanwhile, in Indonesia, a large portion of local taxes heavily depends on car sales. So when the market declines, revenue also decreases,” he later added.

Therefore, Bob Azam revealed that the discourse on providing vehicle incentives in 2026 has the potential for a positive impact.

“Yes, hopefully, because during Covid-19, the government provided incentives, and state revenue actually increased. This is because more people bought vehicles and then paid the 3 percent luxury goods sales tax (PPNBM),” he later added.

Previously, it was reported that the government is preparing a new incentive or subsidy scheme for 2026. This is being done to safeguard the national automotive industry.

The Ministry of Industry (Kemenperin) stated that it will collaborate with several parties to discuss this assistance.

“We will continue to coordinate with the Coordinating Ministry for Economic Affairs, the Ministry of Finance, as well as associations like Gaikindo and other industry players,” said Agus Gumiwang Kartasasmita, Minister of Industry, on the official Kemenperin website, Monday (17/11).

He assessed that the automotive industry involves millions of workers. Ranging from component suppliers, logistics, to sales networks and both official and unofficial workshops.

Photo : KatadataOTO

Therefore, the government's presence is considered to be of great help for the sustainability of the automotive industry in the coming year.

The Minister of Industry stated that the proposed 2026 incentives will be synergized with the agenda for developing the electric vehicle ecosystem.

This includes plans for the continuation and refinement of incentives for the purchase of electric motorcycles, which have been previously launched by the government.