automotive

The Minister Of Industry Asks Toyota And Suzuki Not To Raise Selling Prices After Layoffs

Minister of Industry Agus Gumiwang Kartasasmita has requested a commitment from three Japanese automotive manufacturers, Toyota, Suzuki, and Daihatsu, not to raise the selling prices of their vehicles and not to lay off their workforce in Indonesia. Agus Gumiwang made this statement at the Indonesian Pavilion during his attendance at the World Expo 2025 in Osaka, Japan, last Thursday (July 11). 

Agus expressed concern over the potential for turmoil in the national automotive sector if vehicle prices spike or workforce reductions occur. 

"Therefore, I specifically request that there be no car price increases and no layoffs in Indonesia. This is crucial to maintain people's purchasing power and maintain jobs in the automotive sector, which is one of the pillars of the national industry," he said in a written statement on Sunday (July 13, 2025). 

The executives of Toyota, Suzuki, and Daihatsu welcomed the request. They acknowledged the Indonesian government's concerns and expressed their commitment to maintaining stable prices and retaining workers amidst various global challenges. 

"We appreciate their commitment. This is a concrete step in supporting the stability of the automotive industry in Indonesia," he said. 

During the meeting, Agus also discussed the importance of maintaining Indonesia's domestic automotive market so that it remains attractive and competitive. The Indonesian government is pursuing various deregulation measures and fiscal incentives to encourage investment in the automotive sector. He emphasized that close collaboration between the government and automotive principals is crucial to ensuring the sustainability of the industry and the welfare of workers in Indonesia. With its significant contribution to GDP and employment, the automotive industry is a strategic sector that must be jointly safeguarded. 

"The Indonesian automotive market has great potential. We must not lose momentum simply because of price increases or workforce reductions, which could trigger a domino effect," he said. 

He noted that the Indonesian automotive industry is large-scale, with significant contributions from the four-wheeled, two-wheeled, and three-wheeled segments. The four-wheeled segment is supported by 32 manufacturers with a production capacity of 2.35 million units per year, employing up to 69,390 people and realizing investment reaching IDR 143.91 trillion. Meanwhile, the two- and three-wheeled vehicle segment is supported by 73 manufacturers, with a total annual production capacity of 10.72 million units, employing 30,310 people, and realizing investment of IDR 30.4 trillion. 

From January to May 2025, the four-wheeled vehicle industry recorded production of 459,000 units, sales of 316,000 units, and CBU exports of 192,000 units. During the same period, the two- and three-wheeled vehicle industry recorded production of 3.37 million units, sales of 3.1 million units, and CBU exports of 268,000 units. He is optimistic that this anticipatory measure will receive a positive response from the public and industry players, signaling the government's commitment to the sustainability of the national automotive industry amidst global economic dynamics. 

Tag: Agus Gumiwang Kartasasmita Japanese Automotive Suzuki Toyota