automotive

The Fate Of The Indonesian Automotive Industry In 2025 Amidst Declining Sales, Analysts Highlight Tax Options

Since 2024, the automotive industry market in the country has experienced a significant decline, with analysts pointing to the tax option policy implemented by the government as a contributing factor. 

According to the Secretary General of the Indonesian Automotive Industry Association (GAIKINDO), the sales of motor vehicles have dropped from 1 million units to 865,723 units. Consequently, GAIKINDO revised its sales target in October 2024. 

"We had to revise our sales target in October of last year, which was initially set at 1.1 million units. However, the situation dictated otherwise, leading us to adjust the target to 850,000 units," explained Kukuh during a Media Gathering event held at the Bungarampai restaurant in Central Jakarta on Monday, March 17, 2025. 

Meanwhile, automotive analyst Bebin Djuana predicts a bleak outlook for the automotive industry in 2025.  

In addition to the drastic decline in sales, the lack of government support for the industry has also contributed to its downturn. 

"Generally speaking, who can confidently say that Indonesia's economy is doing well? As part of the global economy, it is also facing challenges," Bebin stated when interviewed by Disway.id on Tuesday, March 18, 2025. 

In addition to the economic concerns, Bebin highlighted the government's role in the automotive sector, particularly the tax option policy, which is seen as having a significant impact on motor vehicle sales in Indonesia. 

"The government encourages car manufacturers to be more efficient in order to lower prices. Twenty years ago, they didn't need to be told; they did it on their own," Bebin concluded. 

Furthermore, the tax option policy has also contributed to a decline in motor vehicle sales. 

Tag: GAIKINDO Indonesian Automotive Industry Motor Vehicle