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An automotive industry executive says quick policy intervention is needed to stimulate demand in the lackluster car market.
he Indonesian Automotive Industry Association (Gaikindo) has called on the government to issue short-term incentives to revive an automotive market that has remained sluggish throughout 2025.
“Perhaps we should expect short- to medium-term incentives, for two to three years, so that sales can recover quickly,” Gaikindo Secretary General Kukuh Kumara said at the Bisnis Indonesia Forum on Thursday, as quoted by Bisnis.
He urged the government to consider a scheme similar to the tax relief measures rolled out during the COVID-19 pandemic. At the time, the government provided luxury sales tax (PPnBM) waivers, which helped push sales above 1 million units in 2022, meeting an often-cited industry target.
Kukuh compared Indonesia’s performance to Malaysia’s, which recorded 816,747 units in sales in 2024 despite a population of only around 34 million people. By contrast, Indonesia, has a population of more than 280 million.
From January through August, wholesale car sales reached only 500,951 units, down 10.6 percent from 560,552 units sold in the same period last year. To meet the 900,000-unit target, the industry would need to sell an average 96,000 units per month in the remaining four months, compared to 61,780 units in August.
Despite the tall order, Kukuh insisted the target remained unchanged.
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“So far, there’s no revision of the target. Whether we achieve it or not, we will keep trying, because we need to maintain a positive tone,” he said on Thursday, as quoted by Kompas.
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