Indonesia’s automotive sector, a key barometer of the nation’s economic health, is facing headwinds as car sales continue to decline in 2025. Finance Minister Purbaya Yudhi Sadewa is prioritizing broader economic growth to stimulate demand, opting against traditional sales incentives like subsidies-a move signaling a shift in policy for the country’s largest economy[[1]]. With projections estimating 780,000 units sold this year, down from 865,000 in 2024, the government is outlining a strategy to reverse the trend without direct market intervention.
Jakarta –
Indonesia’s Finance Minister Purbaya Yudhi Sadewa is developing a strategy to boost automobile sales next year, but is steering clear of traditional incentives like subsidies or promotional programs.
The decline in Indonesian car demand throughout 2025 is attributed to a broader economic slowdown, according to the Minister. His plan centers on stimulating economic growth to, in turn, drive demand for new vehicles. The automotive sector is a key indicator of consumer confidence and overall economic health in Southeast Asia’s largest economy.
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“If we can push growth towards 6 percent, car sales should follow and grow. It won’t be negative anymore; it will be positive next year,” Sadewa said, as quoted by CNBC Indonesia on Thursday, December 25th.
“I am confident things will improve. This isn’t about incentives; it’s about improving purchasing power, a stronger economy, and overall progress,” he added.
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Strategi Menkeu Purbaya biar penjualan mobil di Indonesia naik lagi tahun depan. Menariknya, dia memastikan, bukan lewat insentif. Lalu pakai cara apa ya, detikers? Foto: Andhika Prasetia
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Regarding potential car incentives for the coming year, Sadewa stated that his office has not yet received any proposals. Previous reports indicated that such assistance would be discontinued next year, with funds redirected towards the development of a national car program.
“I haven’t received anything yet. We’ll see what comes. But as of now, I haven’t received a final proposal,” he said.
Data from the Indonesian Automotive Industry Association (Gaikindo) shows that car sales in Indonesia reached 710,000 units between January and November. This represents a 9.5 percent decrease compared to the same period last year.
Current projections estimate total car sales for the year will reach 780,000 units, down from 865,000 units sold last year. The figures reflect a challenging environment for automotive manufacturers in the region.
(sfn/lth)
