FILE photo. New cars are parked at a factory in Bojomangu, Bekasi regency, West Java, on March 13, 2024. - Photo: Antara file
JAKARTA: Indonesia has seen car exports surge to a record amid persisting weak demand within the country.
The Association of Indonesian Automotive Manufacturers (Gaikindo) recorded exports of 518,000 completely built-up (CBU) vehicles in 2025, marking an “all-time high”.
Exports had risen despite an unstable global market situation, Gaikindo secretary general Kukuh Kumara said on Friday (Jan 30), adding that the association had yet to identify the drivers behind the recent surge, including potential stockpiling to anticipate further global headwinds.
He noted that demand from several countries remained firm.
Kukuh also pointed out that the strong export performance indicated a “competitive national automotive production base”, reflecting Indonesia’s capability to produce various types of automobiles, from conventional and electric cars to commercial vehicles.
“The bottom line is that Indonesia has achieved self-sufficiency [in the car industry]. Electric cars can be manufactured here [domestically]; conventional vehicles already have biofuel alternatives, and our [production capabilities for] conventional vehicles also remain strong,” he said, as quoted by Kontan.
Gaikindo and the government are seeking to sustain global demand with their export market diversification push, targeting regions like Latin America and the Middle East to reduce reliance on traditional markets.
The association sees the record exports as reflecting a strong foundation for the national automotive industry to maintain its performance this year amid ongoing geopolitical uncertainty and volatile global economic conditions.
Meanwhile, domestic demand remains a concern for the industry, with car sales in the country sliding further below the pre-pandemic levels of more than 1 million units annually.
Domestic four-wheeler sales fell 7.2 per cent year-on-year (yoy) in 2025, signaling sustained sluggish domestic demand despite year-end discounts and government incentives.
Wholesale car sales, which measure shipments from factories to dealers, totaled 803,687 units last year, down from 865,723 units in 2024, according to the latest data from Gaikindo.
Retail sales, or dealer-to-consumer transactions, also dropped 6.3 per cent to 833,692 units.
Despite the contraction, wholesale volumes came in above Gaikindo’s full-year forecast of 780,000 units, a figure that reflects a downward revision from the association’s earlier projection of 850,000 units.
Last year, the government rolled out various incentives to support the country’s automotive sector, from production to consumer demand.
However, a key incentive implemented from 2024 to the end of 2025, which allowed automakers to import completely built-up EVs without paying import duties, luxury tax or value-added tax (VAT), provided they committed to building manufacturing plants in Indonesia, has expired.
On the consumer side, the government introduced partial tax waivers for purchases of electric and hybrid vehicles meeting minimum local content requirements.
It remains unclear whether authorities plan to introduce new incentives for the purchase of four-wheelers this year.
Industry Minister Agus Gumiwang Kartasasmita recently said that technical discussions for car incentives were still underway with the Finance Ministry.
Meanwhile, he announced that the government would not extend incentives for electric motorcycles this year.
“There will be no incentives for electric motorcycles this year, as we are considering our fiscal capacity and [prioritising] the highest cost and benefit impact on the overall economy,” Agus said on Thursday, as quoted by Kontan. - The Jakarta Post/ANN
