How Gaikindo Curbs Mass Layoffs Due to Sluggish Industry

KatadataOTO – The automotive industry is indeed facing very big challenges. Especially regarding new car sales in 2025.

Since the beginning of the year, the four-wheeled vehicle market in the country has not been doing well. Transaction numbers continue to decline every month.

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

From the figure above, there was a decrease of up to 9.7 percent when compared to the same period in 2024.

Photo : Toyota

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

If this continues, manufacturers like Toyota, Suzuki, Daihatsu, and others are predicted to suffer losses.

Seeing this, Agus Gumiwang, the Minister of Industry (Menperin) is trying to find the best way. One of which is by asking manufacturers not to carry out Mass Layoffs.

The Minister of Industry's proposal was well received by Gaikindo. They claim to be trying to ensure there are no workforce reductions.

“We are working on that. The Minister of Industry has repeatedly urged us to avoid layoffs,” said Yohannes Nangoi, Chairman of Gaikindo at ICE BSD, Tangerang some time ago.

Nangoi explained that Gaikindo members continue to strive to avoid mass layoffs despite sluggish new car sales.

“What we are doing is not adding contract employees. For now, we have stopped, we are holding on,” Nangoi affirmed.

Four Japanese Car Manufacturers Agree

As a reminder, a number of manufacturers have committed not to carry out mass layoffs in difficult times like these. They are Toyota, Daihatsu, and Suzuki.

The three Japanese brands want to retain their workforce amidst various global challenges.

Photo : Astra

“We appreciate their commitment. This is a concrete step in supporting the stability of the automotive industry in Indonesia,” said Agus Gumiwang on a different occasion.

Besides these three manufacturers, Honda Prospect Motor (HPM) also stated it is reluctant to carry out mass layoffs. They are committed to maintaining operational stability.

"The market is down right now, we are still trying. As of now, there are no plans to reduce the workforce," said Yusak Billy, Sales & Marketing and After Sales Director of HPM at GIIAS 2025 some time ago.

Billy assessed that Honda is actively monitoring the development of the market and the four-wheeled vehicle industry in Indonesia.