Minister of Industry Agus Gumiwang Kartasasmita conveyed this assurance during his visit to the Indonesian Pavilion at the World Expo 2025 Osaka in Japan on Friday (July 11).
In a written statement released Saturday, the minister said he expressed concern about potential disruptions in the domestic automotive sector if there were sudden vehicle price hikes or mass layoffs.
“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,” he remarked.
Top automotive executives responded positively, expressing understanding of the Indonesian government’s concerns and committing to maintaining stable prices and retaining their workforce amid various global challenges.
Kartasasmita further stated that the Indonesian government is actively pursuing deregulation measures and fiscal incentives to foster a favorable investment climate for the automotive sector, signaling government support for the sustainability of the national automotive industry.
He emphasized that close collaboration between the government and automotive principals is crucial for ensuring the sector's sustainability and safeguarding workers' welfare.
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“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 warned.
According to the Ministry of Industry, Indonesia’s motor vehicle industry operates on a large scale, with significant contributions from both the four-wheeled and two- and three-wheeled vehicle segments.
The four-wheeled vehicle segment is supported by 32 manufacturers, with an annual production capacity of 2.35 million units, employing around 69,390 workers, and attracting Rp143.91 trillion (about US$8.8 billion) in investments.
Meanwhile, the two- and three-wheeled vehicle segment consists of 73 manufacturers, with a total production capacity of 10.72 million units per year, employing approximately 30,310 workers and attracting Rp30.4 trillion (US$1.9 billion) in investment.
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Translator: Ahmad Muzdaffar Fauzan, Kuntum Khaira Riswan
Editor: Rahmad Nasution
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