The Ministry of Industry reaffirmed its commitment to strengthening the Indonesia automotive industry during the Indonesia International Motor Show (IIMS) 2026, which is positioned as a strategic momentum to accelerate recovery and industrial transformation (06/02).

The initiative aligns with the continued positive performance of the national manufacturing sector, which remains a key driver of Indonesia’s economic growth.

Manufacturing Sector Remains the Main Driver of the Economy

Indonesia’s non-oil and gas manufacturing industry recorded growth of 5.17 percent during the first three quarters of 2025, exceeding national economic growth of 5.01 percent.

“The Indonesian manufacturing sector continues to show positive performance as the main driver of the national economy,” said Minister of Industry Agus Gumiwang Kartasasmita in Jakarta on Thursday (05/02).

The sector contributed 17.27 percent to national GDP, equal to Rp3,051.58 trillion, with exports reaching USD227.10 billion, or more than 80 percent of total national exports.

Automotive Industry Plays a Key Role in Industrial Performance

The minister stated that the strong performance of the manufacturing sector is supported by the automotive industry as one of the pillars of the national industry.

Indonesia’s four-wheel vehicle industry is supported by 41 manufacturers with a total production capacity of 2.59 million units per year, while the two- and three-wheel industry involves 82 manufacturers with a capacity of 11.2 million units per year.

Total investment in the automotive sector has reached Rp194.22 trillion, with direct employment of nearly 100,000 workers.

Domestic Market Potential Remains Large in the ASEAN Context

Indonesia maintained its leading position in ASEAN vehicle sales with 865,723 units sold in 2024.

However, national car ownership remains relatively low at 99 units per 1,000 people, which is far below Malaysia, Thailand, and Singapore, indicating significant potential for future domestic market growth.

Electrification and Exports Support Industry Stability

Entering 2026, the automotive industry showed signs of stabilization, supported by strong export performance, accelerated development of electrified vehicles, and improved demand toward the end of 2025.

Vehicle exports increased by 9.7 percent in 2025 to 518,212 units, while total electrified vehicle sales reached 175,144 units, accounting for 21.8 percent of national vehicle sales.

“We hope the implementation of IIMS 2026 can become an important catalyst to accelerate recovery while strengthening the foundation for national automotive industry growth, as well as a strategic space for various initiatives to build consumer confidence, expand adoption of environmentally friendly vehicles, and stimulate increased investment and innovation in the automotive sector,” the minister concluded.

PHOTO: MINISTRY OF INDUSTRY

This article was created with AI assistance.

We make every effort to ensure the accuracy of our content, some information may be incorrect or outdated. Please let us know of any corrections at [email protected].