Indonesia’s Automotive Sector Faces Sluggish Sales
Chinese Brands Gain Ground as Japanese Brands Struggle
Indonesia’s automotive industry is facing headwinds, with new data revealing a significant drop in car sales. While Japanese brands are struggling, Chinese brands are gaining momentum, reshaping the country’s automotive landscape.
Car Sales Decline
According to **Gaikindo**, wholesale car sales in Indonesia reached just 57,760 units in June 2025, marking a 23% year-on-year decline and a 5% month-on-month decrease. This is the lowest monthly sales figure recorded this year, excluding April when sales were affected by Eid al-Fitr holidays.
Consequently, sales for the first half of 2025 totaled 374,741 units, a 9% year-on-year drop. This figure represents only 42-50% of **Gaikindo’s** 2025 target of 750,000–900,000 units.
Japanese Brands See Weak Sales
Most Japanese brands, including those under **Astra International**, have experienced a decline in sales. Suzuki was the only Japanese brand that saw positive sales growth in June 2025.
Chinese Brands on the Rise
In contrast, Chinese brands, with the exception of Wuling, continue to demonstrate positive momentum. Chery recorded monthly sales exceeding 2,000 units for the first time. In June 2025, BYD (including Denza) and Chery became the 6th and 7th best-selling brands, respectively, up from 9th and 10th positions in December 2024.
As a result, the combined market share of **Astra International’s** main brands, Toyota and Daihatsu, only reached 50.2% for the first half of 2025, compared to 52.5% in the same period last year. Honda experienced the largest market share decline, falling to 8.7% from 11.6%. Conversely, BYD (including Denza) and Chery’s market share increased to 5.3% and 2.7%, respectively.
According to the International Organization of Motor Vehicle Manufacturers, global car sales have seen growth in recent years, with electric vehicle sales surging by 35% in 2023 (OICA 2024).
Government Intervention
**Gaikindo** Chairman **Yohannes Nangoi** stated that the association is working with the government to find new ways to stimulate car sales, potentially through fiscal incentives and tax reforms.
Market Performance
Indonesia’s stock market (IHSG) saw a positive change of +0.57%, reaching 6.944. However, foreign flow experienced a decrease of -Rp367 billion. The USD/IDR exchange rate increased by +0.22% to 16.243, while gold prices decreased by -0.60% to 3.297.
Oil prices increased by +0.34% to $70.4, coal prices rose by +1.03% to $112.8, and CPO prices increased by +0.45% to $4.165. Nickel prices, however, decreased by -0.89% to $15.042.
Stock Split Date Adjustment
Petrindo Jaya Kreasi (**CUAN**) has postponed its stock split with a ratio of 1:10 in regular markets and negotiations to July 15, 2025, from the original date of July 10, 2025. The plan was approved at the EGMS on June 30, 2025.
Contracts and Listings
Transcoal Pacific (**TCPI**) secured a nickel ore transportation contract worth $885 million from a non-affiliated nickel mining company in Southeast Sulawesi. The contract spans ten years, with an estimated total transport volume of 100 million metric tons.
Chandra Daya Investment (**CDIA**) and Indokripto universe coin (**COIN**) were officially listed on the Indonesia Stock Exchange (BEI) on Wednesday, July 9. **CDIA** closed soaring +34.7% at Rp256 per share, while **COIN** closed soaring +35% at Rp135 per share.
Top Performers
Top gainers included $PANI (+11.27%), $DSNG (+8.86%), $MBMA (+6.25%), and $TOBA (+6.21%). Top losers were $GGRM (-2.80%), $DEWA (-2.15%), $TOWR (-1.87%), and $GOTO (-1.67%).
Global Economic Factors
**US** President **Donald Trump** announced a 50% tariff on copper imports and plans to impose tariffs on semiconductors and pharmaceuticals. **Trump** also reiterated his intention to impose a 10% tariff on products from BRICS member countries.
Coordinating Minister for the Economy, **Airlangga Hartarto**, revealed that **PT Pertamina** signed a memorandum of understanding to purchase LPG, gas, and crude oil from the **US**. The **FKS Group** and **Sorini Agro Asia Corporindo** have also signed a corn purchase agreement with Cargill.
Policy Changes
Deputy Minister of Energy and Mineral Resources, **Yuliot Tanjung**, indicated that the Ministry of Energy and Mineral Resources is considering direct appointments for the management of oil and gas working areas, potentially through revisions to Law No. 22/2001.
**Yuliot Tanjung** also mentioned that the Ministry is discussing regulations regarding coal and gold product export rates and will meet with the Ministry of Finance to decide on export duties for these commodities.
Financial Matters
**Bank Indonesia** projects retail sales in June 2025 to grow by +2% YoY and +0.5% Mom. In May 2025, retail sales grew +1.9% YoY and -1.3% Mom.
