Daihatsu Says Indonesia's Automotive Market Is Improving, Highlights BI Rate Hike Impact

The increase in Bank Indonesia’s benchmark interest rate (BI Rate) to 5.75% could impact several sectors, including the automotive industry, which has been heavily reliant on vehicle financing. Bank Indonesia, during its Board of Governors Meeting on 17-18 June 2026, decided to raise the BI Rate by 25 basis points to 5.75%. Within less than a month, the central bank has raised its benchmark rate three times, with a total increase of 100 basis points, as a measure to maintain rupiah stability and control inflation. PT Astra Daihatsu Motor’s Marketing Director and Corporate Communication Director, Sri Agung Handayani, assessed that the rate hike could potentially pressure motor vehicle sales. “It is possible, very potential. We just have to see whether we only look at the rate or if there are facilities provided for customers, such as eight-year instalments, although the percentage is still small now. So, the facility is given not only at the time of payment but also in terms of capability, by extending the payment period,” Agung told CNBC Indonesia on Monday (22/6/2026). According to her, flexibility in credit tenor could be one solution to maintain consumer purchasing power when borrowing costs rise. A longer financing scheme is considered capable of helping consumers adjust their payment ability without having to postpone vehicle purchases. However, the implementation of the interest rate hike on vehicle loans does not always occur simultaneously, as each financing company has a different funding structure. “Because it is carried out by leasing companies, and leasing companies have different sources of funding. So, they usually still have sufficient capacity; their lending rate is not necessarily from domestic sources. But some are from domestic sources. So, they definitely have their own calculations,” she said. She mentioned it is difficult to estimate when the BI Rate hike will be fully reflected in vehicle loan interest rates. The decision lies entirely with each financing company, depending on their liquidity conditions and funding sources. “I do not know exactly how long it will take; I cannot answer how long,” she said. Amid the rising interest rates, the improving rupiah exchange rate is also a concern for industry players. However, the automotive market condition is said to be influenced by more than just these two factors. “Actually, the current market’s purchasing power is not solely determined by the exchange rate or the BI Rate. There are many factors, in fact. And we are not talking short term, meaning truly critical for a month and then immediately bad the next day—no, it is not like that. So, the condition, if we look at the market compared to last year, has improved. Compared to last year, it has improved; the figure has increased by around 9-10%,” concluded Agung.