Japanese Brand Car Dealers Gradually Closing, Industry Minister Speaks Out

Industry Minister (Menperin) Agus Gumiwang Kartasasmita has spoken out regarding the increasing number of Japanese brand car dealers gradually shutting down their operations. Agus stated that this presents a unique challenge for Japanese car brands, as the target market has changed. “I think this also poses a challenge for Japanese brands, because everything is related to the market. They must be able to adapt to what the market desires,” Agus said when met in Jakarta on Thursday (9/4). He emphasised that the Indonesian government is accelerating the transition to electric vehicles, both for two-wheelers and four-wheelers, including commercial vehicles such as trucks and buses. This policy shift is expected to occur more rapidly than previously anticipated. “Japanese producers must start recognising that our policies will shift more quickly towards the use of EV-based vehicles,” he stressed. Agus added that global geopolitical dynamics, particularly conflicts in the Middle East region, provide important lessons on national energy resilience. Dependence on fossil fuels is seen as a risk that must be reduced immediately. “The lesson learned from this Middle East conflict is our energy resilience. We must design production that is as little as possible based on fossils,” he said. He emphasised that the President’s directives are clear for Indonesia to fully transition to electric vehicles in the long term. Therefore, all industry players, including Japanese producers, are expected to play an active role in supporting this transformation. “We will shift towards that, and this is a direct instruction from the President so that we can fully adopt EVs, for motorcycles, cars, trucks, and buses,” he concluded.