Indonesian Political, Business & Finance News

Government Highlights Challenges in the Commercial Vehicle Industry

| | Source: KOMPAS Translated from Indonesian | Regulation
Government Highlights Challenges in the Commercial Vehicle Industry
Image: KOMPAS

The opening of Giicomvec 2026 has also highlighted various challenges facing the national commercial vehicle industry. The government assesses that this sector still has significant homework to maintain competitiveness amid market dynamics.

Secretary General of the Ministry of Industry Eko S.A. Cahyanto stated that the performance of the commercial vehicle industry has faced pressure in recent times. One indication is the production decline in 2025.

“National commercial vehicle production in 2025 fell by around 3.5 percent to 164,000 units,” said Eko. This figure is lower than in 2024, which was close to 170,000 units.

In addition, Eko highlighted the emergence of an imbalance between domestic production and national sales. Over the past two years, domestic market needs have not been fully met by local production.

“Since 2024, there has been a shift where part of the domestic demand is instead filled by imported products,” he said. Previously, domestic production was able to meet market needs.

Another challenge of concern is the proliferation of imported trucks that do not undergo homologation processes. Such vehicles are often found operating in specific sectors like mining.

“These vehicles do not go through type testing and do not meet the applicable emission standards in Indonesia,” he stated. This is seen not only as a regulatory violation but also as potentially creating unhealthy business competition.

Eko emphasised that the government will strengthen supervision and enforcement of rules regarding imported vehicles. This step is also crucial to maintain safety and support efforts to control air pollution.

Through Giicomvec 2026, the government hopes that industry players can strengthen synergy in facing these various challenges. Additionally, the event is expected to drive increased utilisation and competitiveness of the national commercial vehicle industry.

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