December 23, 2025 | 05:29 pm
TEMPO.CO, Jakarta - Vice President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN), Bob Azam, hopes that national car sales can reach 800,000 units by year-end.
"Maybe we can strive to close to 800 (thousand), or Malaysia takes the crown (the highest car sales in Southeast Asia)," said Bob in his statement, confirmed in Jakarta on Tuesday, December 23, 2025, as quoted by Antara.
The Association of Indonesian Automotive Industries (Gaikindo) previously revised the car sales target this year to 780,000 units, lowering it from the initial 900,000 sales.
Bob said lower car sales than those in Malaysia would affect the automotive ecosystem in Indonesia. "If Malaysia takes the crown, [we] are concerned the investments will go there instead," he said.
Based on Gaikindo's data, wholesale (factory-to-dealer) car sales in the first 10 months of 2025, amounted to only 634,844 units, dropping 10.6 percent compared to last year's 711,064 units.
Meanwhile, retail sales (dealer-to-consumer) were recorded at 660,659 units from January to October 2025. This figure decreased by 9.6 percent from last year, which reached 731,113 units.
Citing the data from the Malaysia Automotive Association, car sales during January-October 2025 in Malaysia reached 655,328 units. But it was not specified whether the amount was from retail sales or wholesale.
Bob hailed the 2021 luxury goods sales tax (PPnBM) as a very effective stimulus to create demand for new cars and national economic growth. "The luxury goods tax is a demand creation, automatically pouring liquidity into the society," said Bob.
He mentioned that similar incentives exist in several countries, such as Vietnam and Malaysia, and have proven to bolster purchasing power and the economy on a macro level.
"It is very, very (effective), and it is also implemented in other countries like Vietnam, which reduced the luxury goods tax, and now its economy has grown by 78 percent. Malaysia also adopts luxury goods tax incentives," said Bob.
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