Wahyu Sahala Tua, Jakarta – Indonesia's top automotive industry association signaled a likely downward revision to its 2025 car sales target amid slowing national demand and weaker-than-expected transactions at the country's largest auto show.

The Indonesian Automotive Industry Association, or Gaikindo, had previously set a sales goal of 900,000 units for 2025. However, the first-half figures show a sharp decline, with wholesale car sales (those delivered from manufacturers to dealers) falling to 374,740 units, down 8.6 percent from 410,020 units in the same period last year.

Gaikindo Chairman Yohannes Nangoi acknowledged the downturn, stating that even transactions at this year's Gaikindo Indonesia International Auto Show (GIIAS) declined despite an uptick in foot traffic compared to last year.

I ll wait until the end of July or August to make a decision, but it's likely that we will revise the target, Nangoi told reporters at the GIIAS venue last week.

He attributed the weakening demand to macroeconomic pressures that are dampening middle-class purchasing power, particularly for non-essential goods like automobiles.

The economic situation is somewhat challenging, and overall vehicle sales have declined through the first half of the year, Nangoi said.

Despite the soft performance, Nangoi said that GIIAS is not primarily a sales event but rather a platform for showcasing new technologies and vehicle models. He said that Gaikindo places more emphasis on the end-of-year Gaikindo Jakarta Auto Week (GJAW) for actual car sales.

This exhibition isn't mainly about selling. The goal is to educate the public on the latest automotive technologies and introduce new models, Nangoi added.

Source: https://jakartaglobe.id/business/middleclass-squeeze-pressures-indonesias-car-sales-outloo