The Ministry of Industry continues to strengthen Indonesia’s automotive sector as a key driver of national economic growth, supporting events like GAIKINDO Jakarta Auto Week (GJAW) 2025 to promote domestic automotive products and expand market reach (21/11).

“GAIKINDO Jakarta Auto Week (GJAW) becomes a strategic platform to showcase national automotive innovation, including the expansion of low-emission vehicles. We hope this event not only strengthens competitiveness but also attracts new investment in the automotive sector,” said Setia Diarta, Director General of Metal, Machinery, Transportation, and Electronics Industry (ILMATE), on behalf of the Minister of Industry during the opening at ICE BSD, Tangerang.

Strong Manufacturing Growth and Global Ranking

Statistics Indonesia (BPS) reported that the Non-Oil and Gas Manufacturing Industry (IPNM) grew 5.58% year-on-year in Q3 2025, exceeding the national economic growth of 5.04%. This sector contributed the largest growth source of 1.04% to the economy, with its share of GDP rising from 16.92% to 17.39%.

The World Bank’s Manufacturing Value Added (MVA) report ranked Indonesia 13th globally and first in ASEAN, with MVA in 2024 reaching USD 265.07 billion, above the global average of USD 78.73 billion. Indonesia’s performance aligns it with countries such as the UK, Russia, and France.

Domestic Market Potential for Cars and Two-Wheelers

The automotive subsector contributed 1.28% to Indonesia’s GDP in Q3 2025. Indonesia currently has 39 four-wheeler manufacturers with an annual production capacity of 2.39 million units and 82 two- and three-wheeler manufacturers with capacity up to 11.2 million units per year.

From January to September 2025, four-wheeler production reached 0.85 million units, with 0.38 million units exported as Completely Built-Up (CBU), nearly 45% of total production. Two- and three-wheeler production reached 5.25 million units, with 0.41 million units exported.

Setia Diarta noted that domestic market potential remains large, as Indonesia’s Car Ownership Ratio (COR) in 2024 was 99 per 1,000 people, far below Malaysia (490), Thailand (275), and Singapore (211).

Electrification and Low-Emission Vehicle Development

Investment in electric buses, cars, and two- and three-wheelers reached IDR 5.76 trillion. Production capacities include 4,100 electric buses, 110,660 electric cars, and 2.51 million electric two- and three-wheelers per year.

“From 2022 to September 2025, low-carbon emission vehicle (LCEV) production reached 878,000 units, involving 274 local component industries and employing 182,348 workers. We are optimistic that the national electric vehicle industry will continue to grow significantly,” Setia said.

The government has adjusted the minimum Domestic Component Level (TKDN) for electric vehicles: 40% until 2026, 60% for 2027–2029, and 80% starting 2030. Currently, seven electric vehicle producers meet TKDN values of 40–80%.

Government Support and Industry Collaboration

The Ministry of Industry appreciates industry players presenting electrification lineups, especially Battery Electric Vehicles (KBLBB), reflecting readiness for a greener and low-emission future. Strategic incentives include PPnBM DTP for hybrid vehicles and PPN DTP for electric vehicles.

“We fully support GAIKINDO Jakarta Auto Week 2025. Hopefully, this exhibition will act as a positive catalyst for automotive industry growth and the national economy,” Setia said.

GAIKINDO Chairman Putu Juli Ardika reported that GJAW 2025 featured more than 80 brands, including 33 passenger car brands, 2 body manufacturers, 10 two-wheeler brands, and over 40 supporting automotive brands.

“This exhibition is not only a platform to promote the latest products but also to educate the public on the industry’s transformation toward low-emission vehicles,” Putu added.

PHOTO: KEMENPERIN

This article was created with AI assistance.