JAKARTA - The Indonesian automotive industry is one of the important pillars of national economic growth. With the vast employment opportunities available from automotive industry players, the level of demand for motorized vehicles is still quite high, and the potential for growth in the use of motorized vehicles per Indonesian population, making the automotive industry continue to play an important role for the community and the national economy at large.
Although there is a number of global macroeconomic uncertainties that have also affected the automotive industry, with a contribution of more than 7 percent to the manufacturing portion in Indonesia's gross domestic income (GDP), automotive remains one of the important industries in Indonesia. The Government of the Republic of Indonesia also noted that the number of investment realizations in the automotive sector of Indonesia throughout 2020-2024 has reached more than IDR 150 trillion. In 2024, more than 860,000 cars (wholesale) and more than six million motorcycles were sold in Indonesia, which shows the high need for motorized vehicles nationally.
To take a closer look at the important role of the Indonesian automotive sector, East Java Province can be one example, where motor vehicle production and consumption continue to record progress. According to data from the Traffic Corps of the Indonesian National Police (Korlantas Polri), the population of motorized vehicles in East Java as of April 2025 reached 26.1 million units, namely 15.5% of the total motorized vehicles throughout Indonesia, which makes the largest population of motorized vehicles in East Java in Indonesia.
On the side of business actors, according to the Central Statistics Agency (BPS), exports of motorized vehicles and accessories from Tanjung Perak Port in Surabaya to various countries throughout 2024 reached US$441.8 million (equivalent to around Rp7.4 trillion). Various cities and districts in the East Java region have also become a production center for the supply chain of the Indonesian automotive industry, such as Pasuruan, Sidoarjo, and Gresik.
Published data from BPS East Java Province also shows that as of 2022 83 large and moderate-scale manufacturing companies are listed in the fields of motorized vehicles, trailers, and semi-trialers, as well as 45 large-scale and moderate-scale companies in the field of repair and installation of machinery and equipment in East Java. In terms of micro and small-scale manufacturing industries, in 2023 there were 249 companies in the fields of motorized vehicles, trailers, and semi-trialers, as well as 3,374 companies in the field of repair and installation services. machinery and equipment.
With the huge potential of the automotive industry in East Java, both in terms of industry players and consumers, MUFG Bank, Ltd. (MUFG), PT Bank Danamon Indonesia Tbk (Danamon), and PT Adira Dinamika Multi Finance Tbk (Adira Finance) are present to serve the automotive sector in one of the largest provinces in Indonesia. With the history of existence in Surabaya since 1918, MUFG has a close relationship with automotive industry players in East Java. MUFG provides corporate banking solutions that answer customer needs, such as corporate credit, tresuri solutions, and trade finance.
Danamon, as one of the largest national private commercial banks in Indonesia, serves customers in East Java through the Surabaya Regional Office, which reaches 16 regencies/cities with 34 branch offices. Danamon provides banking solutions for a variety of customers, including corporations, small and medium enterprises, to retail customers, such as credit and deposits, transaction banking, to investment and bancassurance solutions.
Adira Finance complements this ecosystem with the presence of 50 branch offices (conventional and sharia), presenting innovative financing solutions, especially in the automotive sector, to help the people of East Java realize easy vehicle ownership and access to funds.
The leading motor vehicle financing product Danamon and Adira Finance, KPM Prima, is also well received by consumers in East Java. In 2024, the total value of KPM Prima financing in East Java grew 211% compared to the previous year, with the number of customers taking KPM Prima in the same period growing 206 percent compared to the previous year. This shows customer confidence in the financial solutions offered by Danamon and Adira Finance, which also answers the customer's need to own the motorized vehicle they need.
Continuing the joint commitment as a One Financial Group to support the East Java automotive industry, for the fourth year, on May 28-1 June 2025, Danamon and Adira Finance, with the support of MUFG, will again be present to support the implementation of the 2025 Indonesia International Motor Show (IIMS), as one of the most prestigious automotive exhibitions in Indonesia. Danamon, as the Official Bank Partner, Adira Finance, as the Official Multifinance Partner, together with Momobil and Momotor as Official Trade-In Partner, is here to provide the best financial solutions to support potential consumers to be able to buy the motorized vehicle they need.
"It is an honor for MUFG to re-support the largest automotive event in Indonesia, IIMS, in the city of Surabaya. Through the Surabaya Sub-Branch Office, MUFG is always present at one of the main economic centers in the country to offer the best financial solutions that suit the needs of our customers in the East Java region," said Michael Sugirin, Managing Director, Head of Global Corporate and Investment Banking for MUFG Indonesia, in his statement, Saturday, May 24.
Irene Sri Redjeki, Regional Corporate Officer Danamon for the East Java region, emphasized that Danamon's position, which is committed to becoming a banking partner and multifinance for the choice of the Indonesian automotive industry in general and East Java in particular, has resumed its support for the largest automotive exhibition in Indonesia, IIMS, by being present in the city of Surabaya for the fourth time.
"Danamon offers solutions for individual and non-individual customers to be able to get their dream vehicle," he said.
SEE ALSO:
Irfan Budianto, Head of Regional SSD East Java Adira Finance, said that in line with Adira Finance's mission to provide various financial solutions that suit customer needs through synergies with the ecosystem, his party continues to strengthen collaboration with Danamon and MUFG.
"Our participation in IIMS Surabaya is part of an active effort to support the growth of the East Java automotive industry which continues to grow. Through financial solutions that are integrated and easily accessible, we are committed to expanding access to community financing and encouraging regional economic growth in a sustainable manner," he explained.
Danamon's support, Adira Finance, and MUFG, for IIMS Surabaya 2025 is for the fourth year, and is a manifestation of Danamon's commitment, Adira Finance, with the support of MUFG, as a single Financial Group to contribute to the progress of the automotive industry in Indonesia. The existence of a strong Danamon, Adira Finance, and MUFG in Surabaya and East Java is also proof of the importance of this region for the business of all three financial institutions, as well as its big role for the progress of the Indonesian economy as a whole.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
