Honda Assesses Impact of Middle East Conflict on Indonesian Market

JAKARTA, KOMPAS.com – Geopolitical tensions in the Middle East region have the potential to impact the global automotive industry, including in Indonesia.

In response to this, PT Honda Prospect Motor (HPM) stated that it is still evaluating the possible impacts, particularly on production and model strategies in the domestic market.

HPM President Director Masanao Kataoka said that the company cannot yet provide a definite picture as it is still studying the situation.

One impact of the Middle East conflict is the rise in fuel oil (BBM) prices. This could certainly become an opportunity to increase electric vehicle sales.

Regarding this, Kataoka admitted that he does not yet fully understand the current Indonesian market conditions, given that he has just arrived and started his tenure.

“I don’t know the actual situation in the Indonesian market because I just arrived yesterday. So we will check the actual situation,” he said.

For information, Kataoka was recently appointed as President Director of PT HPM, replacing Shugo Watanabe who had held the position for the past two years.

According to Kataoka, Honda will soon formulate strategies after obtaining a clearer picture of the market conditions and the potential impacts of the conflict.

For information, conflicts in the Middle East often affect the global supply chain, including the distribution of components and fluctuations in energy prices, which influence the automotive industry.

Nevertheless, Honda emphasised that it will continue to monitor developments in the situation to ensure that the steps taken remain aligned with the needs of the Indonesian market.