August 4, 2026 | 03:56 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa has requested Toyota to relocate its factory from Thailand to Indonesia. He stated that the government would provide the incentives required by the Japanese auto giant.
"This time, we will increase the equity stake and provide sufficient incentives for you to move your manufacturing facilities from Thailand to Indonesia," he said in South Tangerang on Tuesday, August 4, 2026.
Purbaya made this statement before a group of Toyota executives on the sidelines of the Gaikindo Indonesia International Auto Show (GIIAS) 2026. Management representatives from other automotive companies and Ministry of Finance officials were also present to hear the remarks.
Purbaya said Toyota likely skipped Indonesia as its Southeast Asian manufacturing hub due to a lack of incentives offered to foreign investors, in addition to an unfavorable investment climate.
The proposal was made because the automotive manufacturing industry contributes one-fifth of the national economy. The industry also employs 1.5 million people. "The installed production capacity yields 2.5 million vehicles each year," he said.
Purbaya pointed out that the automotive industry does not operate in isolation but is interconnected with the steel, electronics, chemical, logistics, and financial sectors. However, he acknowledged that a significant amount of steel, electronics, and chemical materials are still imported.
Therefore, he urged Toyota to invest more heavily in Indonesia. "If you can bring supporting industries here, I will provide sufficient—or even greater—incentives," he said.
Read: Toyota Invests Rp1.3 Trillion in Indonesia EV Battery Ecosystem
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