Indonesia

Reported on May 6, 2024, Vice President of PT Toyota Motor Manufacturing Indonesia (TMMIN) said localization of industry in Indonesia is a complex matter and many factors need to be considered. One of them is the government’s plan to increase value-added tax (VAT) to 12% in 2025.

The large number of taxes imposed in the country will create a dilemma, where industry will choose to use imported semi-finished goods instead. 

Previously, TMMIN was also worried that the 12% VAT would make the price of automotive industry components even more expensive. This will have an impact on the supply chain. Therefore, TMMIN hopes that the government and policy makers will prepare a gradual impact plan for the VAT increase to avoid turmoil in the industry. 

(From Gaikindo press release on May 6, 2024 and multiple sources)

Reported on May 7, 2024, Secretary General of the Indonesian Ministry of Industry revealed that 2 new electric motorbike factories that will hold the groundbreaking ceremony in Karawang, West Java, in May 2024.

The information regarding the brand or country of origin of this electric motorbike manufacturer has yet to be unveiled. This electric motorbike brand, however, was reportedly already sold in Indonesia, but production was carried out abroad. 

Among manufacturers that have announced plans to build electric motorbike assembly plants in Indonesia was PT Sunra Asia Pacific Hi-Tech (Sunra Indonesia), which will build a plant in the Kendal Industrial Area, Central Java, with a total investment plan of up to USD 120 million. The plant will be completed in 2 stages, with a construction period of 18 months. It will be ready to operate by 2025. 

(From an article of Republika on May 7, 2024)

Reported on May 3, 2024, PT Astra International Tbk - Peugeot Sales Operation revealed that Stellantis has decided to stop selling Peugeot vehicles in Indonesia. This is part of Stellantis' business growth strategy in the ASEAN region.

Astra International added that this decision of Stellantis had nothing to do with the influence of the presence of Chinese vehicle brands in Indonesia.

Starting from May 2, 2024, sales of Peugeot vehicles in Indonesia have been stopped.

According to data from the Association of Indonesian Automotive Industries (Gaikindo), Peugeot recorded wholesale sales of 199 cars in Indonesia in 2023.

(From an article of Republika on May 3, 2024 and multiple sources)