JAKARTA - The Ministry of Industry (Kemenperin) admits that the performance of the automotive industry will decline in 2025.
The Ministry of Industry has also submitted a proposal for incentives for the automotive sector so that it can be given again next year.
The Indonesian Motor Vehicle Industry Association (Gaikindo) noted that from January to November 2025, new car sales reached 710,084 units.
The number reflects a 9.6 percent decline compared to the same period last year which reached 785,917 units in wholesales.
The Director General of the Metal, Machinery, Transportation Equipment and Electronics Industry (ILMATE) of the Ministry of Industry, Setia Diarta, estimates that car sales by the end of 2025 will be below the 800,000 unit level.
The projection considers the level of new car sales which monthly only touches around 70,000 units.
"If you look at the sales pattern every month of 60,000-70,000 units, to reach 800,000 it seems difficult this year. So our estimate, the projection is around 775,000 units," said the man who was called Tata in a press conference on the Performance of the Manufacturing Industry in 2025 and the Outlook for the Manufacturing Industry in 2026 at his office, Wednesday, December 31.
The decline in new car sales also pressured the performance of the transportation equipment industry subsector.
Until the third quarter of 2025, the transportation equipment industry experienced a contraction of -1.95 percent.
Meanwhile, for 2026, the Ministry of Industry aims for the transportation equipment industry to grow positively by 2.93 percent.
Minister of Industry (Menperin) Agus Gumiwang Kartasasmita also highlighted the contraction in the automotive industry this year. According to Agus, there needs to be support from the government in the form of incentives or stimuli so that the performance of the automotive industry can grow again in 2026.
Agus explained that the automotive industry has a large industrial ecosystem (backward-forward linkage) relationship with the manufacturing sector.
"If you look at the data -1.95 percent, the obligation of the Ministry of Industry to propose incentives. Our focus is to protect the workforce in the automotive ecosystem, because the backward-forward linkage is large, it must be protected," he explained.
According to Agus, his party has submitted a proposal for the 2026 automotive incentive to the Ministry of Finance (Kemenkeu).
However, he has not detailed the points of the proposed incentive.
Agus only gave a clue that his party proposed a more detailed incentive scheme compared to the incentives given during the COVID-19 period.
The automotive incentive proposal in 2026 considers market segments, types of technology, the amount of the Domestic Component Level (TKDN) and emission values.
"What must be underlined is that we pay close attention to consumers. If we talk about entry cars, first buyers, it is our priority. Regarding the numbers, I can't open it now," he said.
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