Car Sales Surge 32.9 Percent, Purbaya Confident in Public Purchasing Power

Finance Minister Purbaya Yudhi Sadewa has stated that growth in car sales is one indicator showing that demand and purchasing power in the domestic market remain well maintained. While attending the Gaikindo Indonesia International Auto Show (GIIAS) 2026 in Tangerang, Banten, on Tuesday, Purbaya noted that car sales grew 32.9 percent year-on-year (yoy) in June 2026, whilst motorcycle sales grew 1.1 percent yoy. “We monitor every variable that shows current and future economic conditions and act swiftly to ensure economic growth is not affected by negative developments in the market,” Purbaya said. In addition to vehicle sales growth, Purbaya also referred to a number of other domestic economic activity indicators that are showing strengthening. For instance, domestic cement sales in June 2026 grew 13.5 percent yoy. Electricity consumption increased by 10.8 percent yoy, with growth in the household sector of 12.3 percent, the business sector 10.0 percent, and the industrial sector 6.5 percent. Meanwhile, the retail consumption index continued to rise, reaching 123.3, indicating that public economic activity remains well maintained. He expressed confidence that these various indicators demonstrate the Indonesian economy’s foundation remains strong. “The government will continue to maintain the growth momentum through responsive fiscal policies so that domestic demand remains the main pillar of national economic growth,” he said. The state treasurer also highlighted the important role of the automotive industry as one of the drivers of the national economy. According to Purbaya, the automotive industry not only boosts public consumption but also provides a multiplier effect on the manufacturing sector, investment, and employment. Therefore, he underscored the importance of synergy between government regulations and industry readiness under the auspices of Gaikindo to strengthen the competitiveness of the national automotive industry. This collaboration is considered key to maintaining the industry’s growth momentum whilst accelerating the transformation towards low-emission vehicle technology. “The challenge ahead is not only to encourage the adoption of electric vehicles, but also to maximise domestic added value, investment, job creation, and strengthen the competitiveness of the national industry,” he said.