Daihatsu Accelerates Localisation of Components Amid US Dollar Pressure

Jakarta, Kompas.com - PT Astra Daihatsu Motor (ADM) has revealed a number of strategies the company is pursuing to confront the pressure arising from the rupiah’s depreciation against the United States dollar. Against a backdrop of rising production costs being felt by the automotive industry, Daihatsu has chosen to focus on efficiency and strengthening local components so that the impact is not directly passed on to consumers. ‘The fluctuations in currency movements will require adjustments,’ said Sri Agung in Tangerang on Wednesday, 20 May 2026. Nevertheless, he added, the company is aiming to safeguard business sustainability without rushing to raise vehicle prices in the domestic market. ADM has chosen to make internal adjustments as an initial step in facing the situation. ‘The sustainability of the industry must continue. So we are taking several steps, restructuring costs and improving efficiency in our manufacturing,’ he said. Sri Agung explained that the localisation level of Daihatsu components in Indonesia has now reached more than 80 percent. However, some components still depend on imports, so exchange-rate movements continue to affect the production cost structure. Therefore, ADM has begun strengthening coordination with the supply chain to accelerate the development of local components. The step is considered important to reduce reliance on imported components if currency pressures persist. ‘We are also discussing with our total supply chain to find solutions in the development of localisation for several components,’ he said. According to Sri Agung, the rupiah’s depreciation is not only a challenge for Daihatsu, but for the entire Indonesian automotive industry. After all, most industry players still have links to raw materials and imported components. Although cost pressures are rising, Daihatsu emphasises that the approach being taken will be done cautiously. The company does not want all cost increases passed directly to consumers, particularly first-car buyers who are the main market for Daihatsu. ‘But what Daihatsu will do will be done very carefully and prudently. In other words, not everything will be executed and deployed to customers,’ Sri Agung said. ADM has also confirmed that to date there has been no increase in the price of Daihatsu vehicles in the last four months. The move is aimed at keeping vehicle affordability amid a challenging economy. In addition to efficiency and localisation, the company also relies on growth in rural and developing regional markets as a key sales pillar. Daihatsu believes demand for affordable vehicles outside major cities remains fairly strong even as consumer purchasing power is under pressure.