Arya News - Toyota stressed the need for stimulus to boost spending power and revive new car sales, noting that Indonesia’s automotive industry had experienced a shift in demand toward used vehicles.
JAKARTA – Industry Minister Muhammad Sarmuji has urged PT Toyota Motor Manufacturing Indonesia (TMMIN), the local subsidiary of Japanese auto giant Toyota, to increase vehicle exports from Indonesia by exploring production of double-cab pickup trucks for the Australian market and boosting battery electric vehicle (BEV) production.
The ministry met with the company’s executives in Jakarta on Tuesday to discuss the development of domestic vehicle production, exports and industry growth.
“We have asked Toyota to increase car exports from Indonesia, both by expanding its model lineup and the number of export destinations,” Sarmuji said following the meeting, as quoted by Kompas.com.
He pointed to Australia as a potential export market, citing its geographical proximity and Indonesia’s trade agreement with the country.
However, Sarmuji said that “neighboring countries” still account for a significant share of Australia’s vehicle imports, prompting him to encourage Toyota to manufacture double-cab pickup trucks in Indonesia to tap the Australian market. Besides Indonesia, Thailand is another Toyota manufacturing hub in Southeast Asia, with a particular focus on commercial vehicles.
He said that the government was ready to optimize the local automotive regulatory framework to support the production.
Sarmuji also asked the automaker to accelerate its BEV manufacturing roadmap by producing hybrid vehicles and operating a local hybrid battery plant to supply components to global markets.
He called on Toyota to take further steps toward assembling fully electric vehicles in Indonesia, saying that “our battery ecosystem is already highly advanced”.
TMMIN president director Nandi Julyanto expressed commitment to increasing export volumes, expanding vehicle lineup and entering new export markets.
He said that the firm had begun assembling the bZ4X electric vehicles domestically and is preparing additional BEV models to meet local consumer demand.
At the same time, Nandi stressed the need for stimulus to boost spending power and revive new car sales, noting that Indonesia’s automotive industry had experienced a shift in demand toward used vehicles.
In response, Sarmuji conveyed a plan to provide incentives for hybrid vehicles as part of efforts to boost market growth and strengthen the domestic auto industry.
He plans to propose the incentive this year, with the details and amount still being discussed with relevant stakeholders.
“It’s still under technical discussion. We will clarify the amount of the incentive later,” he said.
Sarmuji signaled that the government could offer different levels of incentives for hybrid cars and battery electric vehicles.
He emphasized that government support was crucial to anchor industry growth, highlighting that Indonesia’s car ownership ratio remained relatively low compared to several neighboring countries, at just 99 units per 1,000 people, compared with 490 in Malaysia and 275 in Thailand.
Sarmuji has previously pushed for nonfiscal incentives for hybrid vehicles, plug-in hybrid electric vehicles (PHEV) and range-extended electric vehicles (REEV).
The proposed incentives include streamlined administrative procedures, exemptions from the odd-even traffic policy, dedicated parking facilities and charging stations.
Meanwhile, the government has repeatedly delayed rolling out its electric vehicle subsidy. A new round of incentives for electric vehicle purchases was set to begin in June, targeting 100,000 electric cars and 100,000 electric motorcycles amid Indonesia’s broader push to stimulate demand and reduce fuel consumption to curb energy subsidies.
However, implementation has been postponed as the Finance Ministry and the Industry Ministry continue technical discussions.
Chinese brands currently dominate Indonesia’s battery electric vehicle market, while Japanese automakers remain focused on internal combustion engine (ICE) and hybrid models.