KABARBURSA.COM – The government aims to make the automotive industry one of the main drivers of the national economy. The sector is estimated to absorb more than 1.1 million workers, consisting of 100,000 direct jobs and one million indirect jobs across the supply chain.
Coordinating Minister for Economic Affairs Airlangga Hartarto said that the competitiveness of the automotive industry needs to be strengthened through export expansion and mastery of technologies such as semiconductors and artificial intelligence (AI). “We need to expand the penetration of domestically produced vehicles in global markets,” he said during the “Three Million Exports for Indonesia” event held by PT Toyota Motor Manufacturing Indonesia (TMMIN) in Karawang, West Java.
In 2024, Indonesia’s car exports reached a value of 6 billion US dollars. As of August 2025, car exports totaled 375,000 units. The Association of Indonesia Automotive Industries (GAIKINDO) targets 500,000 units by the end of the year.
TMMIN’s achievement of surpassing a total of three million vehicle exports since its first shipment in 1987 marks a major milestone for the national automotive industry.
Today, Indonesian-made cars are sold in more than 100 countries across Asia, the Middle East, Africa, and Latin America.
Airlangga said that the Indonesian government is actively opening new markets for Indonesian automotive products. These efforts include participation in the trade bloc Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP-TPP). One of the biggest opportunities comes from Mexico, which could boost Indonesia’s car exports within the next two years.
Toyota Indonesia currently produces an average of 300,000 vehicles per year, supported by 240 tier-1 suppliers and 540 tier-2 suppliers. This industrial ecosystem involves sectors such as steel, plastics, tires, glass, and automotive components.
The transportation equipment sector contributed 1.40% directly to Indonesia’s Gross Domestic Product (GDP) in 2024, and up to 6% indirectly thanks to its extensive value chain from upstream to downstream.
Airlangga emphasized that mastering semiconductors and AI is key to maintaining long-term competitiveness. Currently, around 90 percent of new cars globally are equipped with AI features. The market value of AI systems for Advanced Driver-Assistance Systems (ADAS) is projected to reach 95 billion US dollars by 2030.
He also said that President Prabowo has instructed the strengthening of the national semiconductor ecosystem. Several manufacturers have already operated in Indonesia, including Infineon, which has become a pioneer in the country’s high-tech supply chain. For reference, Infineon is a Germany-based company specializing in semiconductors, particularly in producing chips for automotive, industrial, and electronic devices.
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