High Interest Rates: Automotive Boss Reveals Effect on Car Sales

Weakening purchasing power, the depreciation of the rupiah, and rising interest rates are sentiments affecting the national automotive sector amid global uncertainty in 2026. Gaikindo Secretary General Kukuh Kumara stated that the automotive industry remains optimistic about business targets amidst the uncertainty but remains vigilant in anticipating the impacts, including the effect of rising interest rates on automotive sales pressure. Currently, commercial vehicles and vehicles priced below Rp 300 million are very sensitive to price increases, including the effect of rising interest rates. Therefore, manufacturers and financing companies are implementing a number of offers to boost car sales in facing these conditions. Through the organisation of the GAIKINDO Indonesia International Auto Show (GIIAS), automotive players hope to drive 2026 sales to around 850,000 units. In addition, Gaikindo is pushing export sales, which have already reached 251,000 units as of June 2026, an increase from 2025. Currently, the Philippines, Vietnam, Mexico, and the Middle East are export market shares for Indonesian cars.