Indonesia Does Not Favour Japan, Doors Open to All Car Manufacturers

Indonesia does not favour Japan, with doors open to all car manufacturers. Jakarta, CNBC Indonesia - The Ministry of Industry (Kemenperin) has emphasised that Indonesia does not restrict the origin countries for investments in the automotive industry. The government is instead encouraging global players to enter, provided they commit to building industries within the country. Director General of Metal, Machinery, Transportation Equipment, and Electronics Industries (Ilmate) at Kemenperin, Setia Diarta, stressed that the investment policy is open and non-discriminatory. “The government is actually opening investment opportunities to anyone in Indonesia. So there is no closing off any country, none at all,” Setia stated during a discussion at the Industrial Journalists Forum (Forwin) at Kemenperin on Wednesday (22/4/2026). The entry of producers like BYD is part of companies’ business strategies that leverage existing regulations in Indonesia, particularly regarding investment commitments. He added that Indonesia often serves as a test market location for global automotive producers. However, there are certain limitations that the government considers to encourage deeper investments. “If there are indeed imports exceeding 5,000 units, we will encourage and invite them to conduct CKD in Indonesia,” he explained. Setia also described how domestic production schemes are now increasingly flexible. Producers can utilise existing manufacturing facilities, as done by several global brands. “I’ll just name the brands: Kia came utilising Hyundai’s production facilities because they are in the same group now. Then some brands from Chinese investments entered Handal,” he said. The expansion of these production facilities directly impacts employment absorption and national economic activities. “Adding a production line has implications such as new machines arriving and needing new workers. And this also helps our economy,” Setia continued. Furthermore, he highlighted BYD’s investment commitment in Subang, which is seen as having a significant effect on job creation. “BYD came with an investment commitment to Subang, already providing employment effects for 3,000 people,” he stated. Setia reaffirmed that Indonesia is opening its doors as wide as possible to all investors, including new players from various countries. “As long as they are willing to invest in Indonesia, with good intentions to build, to grow together with the Indonesian nation in terms of economy, community, and so on, let’s open everything without restrictions,” he asserted. He also assured that there is no special treatment or restrictions against certain countries. “Including VinFast which entered through Bekasi, we don’t restrict them, everything is open,” Setia said. Meanwhile, Head of PR & Government at BYD Indonesia, Luther Panjaitan, expressed the company’s readiness to commence manufacturing operations in Indonesia in the near future. “The current number of employees at the manufacturing site is around 3,000 people, already starting manufacturing in stamping, painting, welding, and assembly. Operations will commence shortly,” Luther revealed. With this development, Indonesia is further solidifying its position as one of the attractive automotive production bases in the region, not only for established players like Japan but also for newcomers from China to Vietnam.