The Ministry of Industry (Kemenperin) is strengthening the competitiveness of Indonesia’s commercial vehicle industry amid rising imports, as the sector plays a key role in national logistics and distribution systems, during the opening of GIICOMVEC 2026 in Jakarta (09/04).

The effort aims to reinforce the performance of the transport equipment industry, which contributes significantly to the national economy.

Secretary General of the Ministry of Industry Eko S.A. Cahyanto said the transport equipment industry contributed 1.27 percent to Indonesia’s GDP in 2025. He delivered the statement on behalf of the Minister of Industry at the event.

Sector Contribution and Logistics Growth Strengthen Demand

Eko explained that the automotive trade, including motorcycles, cars, and repair services, contributed 2.02 percent to GDP in 2025.

This reflects rising demand for distribution services, after-sales services, and fleet renewal in commercial vehicle usage.

He also noted that the transport and warehousing sector grew strongly by 8.78 percent in 2025. This growth indicates increasing demand for efficient and reliable commercial vehicles to support logistics operations.

“The performance reflects increasing demand for reliable and efficient commercial vehicles to support the national logistics system,” Eko said.

Production Decline and Import Gap in 2025

Despite demand growth, the domestic commercial vehicle industry recorded a decline in performance. Based on GAIKINDO data, production fell by 3.5 percent in 2025 to around 164,000 units, down from nearly 170,000 units in 2024.

Industry utilization also dropped to around 58 percent, below efficient industrial scale levels. This condition reflects underutilization of production capacity.

Eko also highlighted an imbalance between domestic production and national sales. In 2025, there was a gap of around 4,000 units where market demand was not fully met by domestic production and was instead filled by imports.

“This phenomenon shows a domestic supply gap that must be addressed through strengthening industrial structure, improving production efficiency, and optimizing installed capacity,” he said.

Policy Measures and Zero ODOL Support

Kemenperin continues to support the implementation of the Zero Over Dimension Over Loading (Zero ODOL) policy. This policy aims to create a more efficient, safe, and sustainable logistics system.

Support is carried out through strengthening technical standards for commercial vehicles, accelerating certification processes, and integrating vehicle data into national systems.

The ministry also highlighted concerns over vehicle transactions that do not follow regulations, such as sales without official documents, which may increase the risk of non-performing loans in the financing sector.

GIICOMVEC 2026 as Strategic Industry Platform and Export Performance

GIICOMVEC 2026 is positioned as a business-to-business platform that brings together industry players, users, and stakeholders in the commercial vehicle sector. The event features 14 commercial vehicle brands and more than 35 supporting industries.

Eko stated that the exhibition is not only a promotional platform but also a consolidation space linking production, financing, and policy.

“GIICOMVEC is not only a promotional event, but also a space for consolidation between production, financing, and policy. This is important to increase industrial utilization and strengthen the role of commercial vehicles in the economy,” he said.

GAIKINDO Chairman Putu Juli Ardika added that Indonesia’s automotive exports in 2025 reached 518,212 completely built-up (CBU) units, an increase of 9.75 percent compared to the previous year. Commercial vehicles contributed 20,326 units to this total.

He also said GIICOMVEC 2026 is expected to strengthen connections between industry and professional buyers, targeting more than 11,000 trade visitors to expand international market opportunities.

“Trucks and buses are the lifeblood connecting production centers with markets,” he said.

PHOTO: MINISTRY OF INDUSTRY

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