Many Honda Dealers Closing, Ministry of Industry's Response

JAKARTA - The Ministry of Industry (Kemenperin) is spotlighting the dynamics of competition in the national automotive industry amid the increasingly aggressive entry of Chinese car brands into the domestic market. At the same time, a number of Japanese brand dealers have reportedly closed, in line with changing market preferences. One that has been highlighted is the closure of the Honda Pondok Pinang dealer in South Jakarta. This closure adds to the list of Honda dealers that have ceased operations amid increasingly tight competition in the automotive industry. “All of this is related to the market. So they must be able to adjust to what the market desires,” said Agus, quoted by Antara on Sunday (12/4/2026). He explained that Indonesia’s current government policies are transforming towards more massive use of electric vehicles. This step aligns with efforts to strengthen national energy resilience while reducing dependence on fossil fuels. Agus added that global geopolitical dynamics, including conflicts in the Middle East region, serve as an important lesson for Indonesia to accelerate the energy transition. In that context, the transportation sector has become one of the government’s main focuses. Furthermore, Agus stated that the government has also directed the expansion of the electric vehicle ecosystem development. This ecosystem not only covers passenger cars but also motorcycles, trucks, and buses, so that the transition to electric vehicles can proceed more comprehensively across various transportation segments.