The Indonesian government has received firm assurances from leading Japanese carmakers, Toyota, Suzuki, and Daihatsu, to keep vehicle prices stable and avoid layoffs within their operations in Indonesia.
Industry Minister Agus Gumiwang Kartasasmita shared the update in a written statement on Saturday, emphasizing that he had raised concerns over potential disruptions in the domestic automotive sector caused by sudden price hikes or job cuts.
“I specifically requested them not to raise car prices and not to carry out layoffs in Indonesia. This is crucial for maintaining the purchasing power and protecting jobs in the automotive industry, which serves as one of the pillars of our national industry,” Kartasasmita said.
In response, senior executives from the three Japanese firms reportedly acknowledged the government’s concerns and agreed to maintain both pricing and employment levels, despite ongoing global economic challenges.
The minister also highlighted the government’s ongoing efforts to support the industry, including regulatory simplifications and fiscal incentives aimed at strengthening investment conditions and ensuring long-term sectoral resilience.
He stressed the importance of coordinated efforts between the government and automotive companies to sustain industry growth and protect workers’ livelihoods. “Indonesia’s automotive market holds great potential. We must not lose momentum due to price hikes or layoffs, which could trigger a domino effect,” he cautioned.
According to data from the Ministry of Industry, Indonesia’s motor vehicle sector plays a major role in the national economy. The four-wheeled vehicle segment includes 32 manufacturers with an annual production capacity of 2.35 million units, employing around 69,390 people and drawing investments of approximately Rp143.91 trillion ($8.8 billion).
The two- and three-wheeled vehicle segment comprises 73 manufacturers, with a production capacity of 10.72 million units annually, supporting 30,310 jobs and generating Rp30.4 trillion ($1.9 billion) in investments.
TRENDING | Bentayga Speed Breaks ICE SUV Record at Goodwood Festival
