The Indonesian government is pushing its automotive industry to diversify export destinations, with Mexico identified as a key target. Coordinating Minister for Economic Affairs Airlangga Hartarto said that Indonesia’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP-TPP) could help remove trade barriers such as Mexico’s trade-in quota, opening up new opportunities for Indonesian carmakers over the next two years.
Recent statistics show Indonesia exported about 375,000 cars during the first eight months of 2025, and the industry aims to reach a total of 500,000 units by year end. Of the global new vehicle market, internal combustion engine (ICE) vehicles still dominate, and ASEAN’s auto sales remain heavily weighted toward ICEs. At the same time, the government also wants to strengthen capabilities in areas such as semiconductors and artificial intelligence — especially for features like Advanced Driver-Assistance Systems (ADAS) — given their growing importance in the future of automotive technology.
