RRI.CO.ID, Jakarta – Indonesia’s Minister of Industry, Agus Gumiwang Kartasasmita, affirmed the strategic importance of Indonesia’s automotive sector to the national economy. He made the remarks during the Opening Ceremony of the Indonesia International Motor Show (IIMS) 2026 in Jakarta, Wednesday, 5 February 2026.

The minister said the automotive sector directly employs nearly 100,000 workers. “This figure does not yet include indirect employment, which is significantly larger,” he said.

He added that the sector has attracted substantial investment over the years. Agus noted that total investment in the automotive industry has reached Rp194.22 trillion to date.

According to Agus, this level of investment generates significant multiplier effects for the broader economy. “Such investment will undoubtedly create a strong multiplier effect for economic growth,” he said.

Agus stressed that the automotive industry is one of the largest sectors with strong forward and backward linkages. “This sector has extensive connections across the supply chain,” he conveyed.

In the ASEAN market, Agus said Indonesia has maintained a leading position. He noted that total vehicle sales in Indonesia reached 265,000 units in 2024.

However, Agus acknowledged reports from the Indonesian Automotive Industry Association (Gaikindo) regarding regional competition. “Automotive sales in Malaysia may have approached or even surpassed Indonesia,” he said.

In addition, Agus described the situation as a warning for Indonesia and called for collective action. “This is an alarm, and I urge all stakeholders to formulate mitigation measures so Indonesia can regain its position as the top automotive market in ASEAN,” he said.