Japanese Car Dealers Closing Down, Toyota's Response

JAKARTA - The phenomenon of several Japanese-origin car dealerships closing in Indonesia over the past year has begun to draw attention in the national automotive industry. Indeed, not a few networks have chosen to switch to selling Chinese brands, in line with changes in the domestic market competition landscape. In response to this, Vice President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN), Bob Azam, assessed that dealership closures cannot be viewed simplistically and require deeper examination. “We must first look at the reasons for the closures. I don’t want to specifically discuss how Toyota maintains its dealerships, or it would give away our strategies, right? But in general, we must examine why they are closing,” said Bob in Central Jakarta on Tuesday (14/4/2026). Bob emphasised that competition in the automotive industry is a normal occurrence, as long as it proceeds fairly. However, he cautioned against imbalances that could disadvantage certain industry players. “As long as it’s fair competition, I think that’s not a problem. But don’t let the competition become unfair. They (Chinese cars) can be cheaper because they are not subject to taxes, while we are taxed. That creates an imbalance,” he said. Furthermore, Bob also touched on the substantial investments poured by Japanese manufacturers in Indonesia, particularly in building production facilities and increasing local content. He assessed that such efforts should receive support to remain competitive in the market. According to Bob, these investments also directly impact job creation, especially in industrial areas like Cikarang and Karawang. Therefore, he hopes that existing policies do not make invested industries less competitive. “If we invest, it’s indeed more expensive, but it has effects on job creation and the economy. So don’t let the intention to invest make us uncompetitive,” said Bob.