TEMPO.CO, Jakarta - Indonesian Industry Minister Agus Gumiwang Kartasasmita is optimistic that the national car production throughout 2026 can surpass 850,000 units. Following the production of 615,000 units in the first semester of 2026, this target is considered realistic.
Agus says that this achievement shows that the national automotive industry is shifting from a market-based to a production-based model. "Indonesia is in the process of transitioning from initially being a market base to a production base," said Agus when opening GIIAS 2026 in BSD, Tangerang, Banten on Thursday, July 30, 2026.
He stated that car production in the first semester of 2026 grew by 11.3 percent compared to the same period last year. On the other hand, wholesale car sales also increased by 15.9 percent annually to 436 thousand units.
Nevertheless, Agus pointed out that the rate of car ownership in Indonesia is much lower than in other countries in the region. Currently, the car ownership ratio in Indonesia has only reached 19 units per 1,000 people. For comparison, Thailand's car ownership ratio is 275 per 1,000 people, while Malaysia's is 490 per 1,000 people.
Agus claims that the low ownership ratio indicates significant potential for growth in the domestic market. With a population of nearly 290 million, an increase of one car for every 1,000 people would create an additional demand of about 280,000 vehicles. "That number is almost one-third of our entire domestic market today," said Agus.
Based on data from the Indonesian Automotive Industries Association (Gaikindo), Toyota remains the largest car manufacturer in Indonesia in the first semester of 2026. The manufacturer recorded production of 268,528 units, an increase of 9.5 percent compared to the same period last year.
The second position is occupied by Mitsubishi Motors with a production of 93,558 units from its manufacturing facility in Cikarang, West Java. Meanwhile, Daihatsu came in third with a production volume of 73,065 units during the same period.
Read: Indonesia Eyes Expansion of Electric Transport, Prabowo Says
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