Purbaya Lures Toyota to Relocate Factory to Indonesia: 'I'll Give You What You Want!'

Jakarta - The government is targeting Indonesia to become the largest automotive production base in Southeast Asia. Finance Minister Purbaya Yudhi Sadewa has even openly invited global automotive manufacturers, including Toyota, to relocate their manufacturing centres from Thailand to Indonesia with the lure of various incentives.

“We will also support Toyota, but move your main production from Thailand to Indonesia. I will give you all the incentives you want. We are the largest country in ASEAN, why is the centre in Thailand? Perhaps in the past we did not provide enough incentives to foreign investors or maybe the investment climate was not good,” Purbaya said at GIIAS BSD on Tuesday (4/8/2026).

According to Purbaya, the government is improving the investment climate so that Indonesia becomes the main destination for automotive industry expansion. These improvements involve not only fiscal incentives but also simplifying licensing and resolving various investment barriers that business players have long complained about.

“If you want to do that, I will give you many incentives. We will improve it seriously this time. We will provide sufficient incentives for you to move your production facilities from Thailand to Indonesia,” Purbaya stated.

He assessed that the automotive industry plays a strategic role as it drives many other sectors, from steel, electronics, and the chemical industry to logistics and financial services. For this reason, the government also wants to attract component industries to build a supply chain domestically so that added value no longer flows largely abroad.

“If you can bring your supporting industries here, I will give you sufficient or even more incentives. As long as you build Indonesia, the government will give maximum support,” he said.

Purbaya is optimistic that the large domestic market can serve as capital to make Indonesia a production hub as well as a vehicle export base. The government, he said, will focus on creating strong domestic demand and ensuring that investment can proceed more quickly so the industry has certainty to expand.

“I will create strong demand so you can develop maximally here. I will improve the investment climate so you can do business well and earn good profits. I want Indonesia to become the production base for car manufacturers in this region and export to the global economy,” he stated.