JAKARTA, 05/02/2026— The automotive industry has long been one of the backbones of the Indonesian economy. It employs a large workforce and attracts significant investment.
The automotive industry is a leading sector, contributing significantly to the manufacturing Gross Domestic Product (GDP), exports, and employment. “The automotive sector plays a significant role in GDP, accounting for around 1.28 percent in the third quarter of 2025. The manufacturing sector has been in the top four after the food and beverage, chemical, pharmaceutical, and electronics industries,” said Ali Murtopo Simbolon, Deputy for Coordination of Trade and Digital Economy at the Coordinating Ministry for Economic Affairs, in his remarks at the CNN Indonesia: Evolution Indonesia Forum in Jakarta on Tuesday, 3 February 2026.
It is crucial to maintain its sustainability. “From a backward-forward perspective, the automotive industry involves a very broad ecosystem. And that’s what convinces us that maintaining the automotive industry is crucial. Automotive is also a symbol of a country’s technological and economic progress,” Ali said.
Investment in the automotive sector has reached approximately IDR 174 trillion, directly employing nearly 100,000 people in the four-wheeled, two-wheeled, and three-wheeled vehicle industries. Millions of other workers are involved throughout the automotive value chain, from component suppliers and logistics to authorized and unofficial sales networks and workshops. (DETIK)
