This contraction in the automotive sector is attributed to prevailing economic factors and a decline in consumer purchasing power. Yohannes Nangoi, Chairperson of the Indonesian Automotive Vehicle Industry Association, commented on the situation, stating that the global economic climate, including conflicts in Europe and the Middle East, along with trade policies, has impacted Indonesia’s economy and, consequently, consumer spending.
Nangoi explained that consumers are adopting a cautious approach to spending, including deferring vehicle purchases, even though the funds are available. This trend is observed across all consumer segments. Despite the current economic headwinds,the underlying demand for vehicles is still present,with consumers prioritizing other needs or waiting for more opportune times to make such purchases.
The Gaikindo Indonesia International Auto Show (GIIAS) 2025 is being viewed as a potential catalyst to stimulate the market and encourage consumer spending on vehicles. However, organizers have set modest expectations for the exhibition, with no specific sales targets announced. nangoi noted that achieving sales figures comparable to the previous year, which saw approximately 34,000 transactions, would be considered a success given the current economic climate.
(dry/din)