Japanese Car Dealers Collapsing Under Assault from Chinese Brands, Says Industry Minister

Industry Minister (Menperin) Agus Gumiwang Kartasasmita has stressed that Japanese automakers must adapt to market demands following the closure of several car dealerships in Indonesia, which are increasingly being replaced by brands from China.

The Minister stated that this situation presents a challenge for Japanese automakers to adapt to changing consumer preferences.

“I think this is also a challenge for Japanese brands because everything is related to the market. So they must be able to adjust to what the market wants,” said the Minister when met in Jakarta on Thursday (9/4/2026).

He emphasised that Japanese producers need to be more astute in reading the direction of government policies, which are now rapidly moving towards electric vehicle (EV)-based transportation. According to him, this shift will become even stronger with the government’s push to reduce dependence on fossil fuels.

He mentioned that global dynamics, including conflicts in the Middle East region, provide important lessons regarding national energy resilience. Therefore, Indonesia needs to reduce its dependence on fossil fuel-based energy in the production process, including in the automotive sector.

Furthermore, he conveyed that the government has provided clear directives to accelerate the adoption of electric vehicles domestically, not only for passenger cars but also encompassing motorcycles, trucks, and buses.