Toyota Optimistic About Impact of US Import Tariffs in Indonesia

KatadataOTO – The import tariffs implemented by the United States government are considered to have no direct impact on the domestic automotive industry.

However, several parties believe that import tariffs in the automotive sector have the potential to make domestic competition even tighter.

The President of Indonesia also plans to ease import quotas, making it easier for foreign manufacturers to market their products in Indonesia.

Currently, the domestic automotive market is also seeing the arrival of many new brands, especially from China. The prices offered are competitive, and many of the latest technologies are embedded in vehicles from China.

Photo : Toyota

These factors present a unique challenge for various manufacturers like Toyota. However, PT TAM (Toyota Astra Motor) welcomes the arrival of new brands.

According to a Toyota representative, the four-wheeled automotive landscape in Indonesia has been quite dynamic in recent years, as seen from the abundance of new brands in the country.

“On one hand, this is a positive thing, indicating that the Indonesian market still has great potential, and it adds more options for consumers,” said Jap Ernando Demily, Marketing Director of PT TAM, to KatadataOTO recently.

But to adapt to a market that will experience changes due to the US import tariffs, he revealed the importance of supporting regulations.

“It needs to be followed by the adaptation of flexible regulations in managing the current market, so that the business and investment climate of the manufacturing industry, which is one of the largest industries, can continue to grow positively,” he asserted.

Facing the fierce competition in environmentally friendly vehicle products, Toyota affirmed that it will still focus on its Multi-Pathway strategy, consisting of 22 different models.

In the future, Ernando asserted that Toyota will continue to add to its line of environmentally friendly vehicles in broader segments.

“Just wait for our updates in the future,” he said.

Photo : KatadataOTO

Automotive observers also believe there is a need for policies that support and protect the domestic industry in anticipation of a flood of foreign products following the implementation of US import tariffs.

“The government can apply selective tariffs. For example, by increasing tariffs for completely built-up (imported) vehicles from China,” said Yannes Martinus Pasaribu, an automotive observer and academic from ITB (Bandung Institute of Technology), when contacted by KatadataOTO some time ago.

Then, investors could be required to build partnerships with SMEs (Small and Medium Enterprises) with a measurable, time-bound percentage of Local Content Level (TKDN).