Indonesia's automotive component industry is facing significant challenges due to sluggish domestic vehicle sales and the influx of imported electric vehicles (EVs), leading to potential layoffs. To navigate these difficulties, the Indonesian Automotive Parts and Components Industry Association (GIAMM) is encouraging local manufacturers to expand their export markets. While domestic demand remains volatile, exports have shown positive performance, with the Ministry of Industry reporting the shipment of 153 million automotive components in 2024. GIAMM aims to increase this figure by targeting more countries, reducing reliance on the domestic market, and mitigating fluctuations in local demand.
In addition to expanding exports, GIAMM is seeking government support in the form of incentives such as subsidies or tax relief to bolster the competitiveness of local component manufacturers. These measures are intended to stimulate the industry and ensure its resilience in the face of global market challenges. By becoming global players, Indonesian component manufacturers can better withstand domestic market volatility and position themselves for sustainable growth.
