GIIAS 2025 Signals Revival Amid Sluggish Automotive Market
Main Takeaways
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TANGERANG, Investortrust.id – The Gaikindo Indonesia International Auto Show, or GIIAS, 2025 has emerged as a symbol of hope for the country’s automotive sector, amid declining consumer demand and global economic uncertainty. Held from Thursday, July 24 to Sunday, Aug. 3, 2025, at the Indonesia Convention Exhibition BSD City, the event features more than 40 new car models and a strong emphasis on electric vehicles and future-ready technologies.
Minister of Industry Agus Gumiwang Kartasasmita described GIIAS as more than just a product showcase. “The transition to electrification requires comprehensive synergy, and GIIAS 2025 is the perfect momentum for that,” he said during the opening ceremony on Thursday.
Organized by the Association of Indonesian Automotive Industries (Gaikindo), the event arrives at a moment when the domestic car market is contracting. Wholesale vehicle sales dropped 8.4% to 374,740 units in the first half of 2025, while retail sales declined 9.7% to 390,467 units, according to Gaikindo.
Jongkie Sugiarto, Gaikindo’s First Chairman, attributed the downturn to weakened purchasing power and slower GDP growth below the 5% threshold. By comparison, Thailand’s automotive sales fell a sharper 24.7% year-on-year in the same period, underscoring Indonesia’s relatively stronger structural resilience.
Innovation Drives the Narrative
Despite the subdued market environment, GIIAS 2025 showcases major product launches. Models like the Honda STEP WGN e:HEV, Toyota Corolla Altis HEV GR Sport, and BYD Atto 1—branded the Seagull in some markets—have drawn attention. BYD’s compact EV, starting at Rp 195 million ($11,900), positions itself as a mass-market option.
Jaecoo's J8 SHS ARDIS plug-in hybrid, boasting 530 horsepower and a 1,400 km range, signals growing competition for internal combustion engine (ICE) vehicles. Meanwhile, XPeng's flying car, BMW’s iX1 electric SUV, and Polytron’s locally designed G3 EV underline the show's futuristic tone.
Gaikindo Chairman Yohannes Nangoi highlighted export resilience as a silver lining. “In 2024, Indonesia exported nearly 500,000 completely built-up (CBU) units—a 7% increase through mid-2025. Our products now reach over 90 countries,” he said.
Foreign direct investment continues to pour into the sector, totaling Rp 150 trillion ($9.1 billion) over the past five years, with 90% coming from overseas investors. Nangoi emphasized this as “a testament to Indonesia’s long-term market attractiveness.”
Untapped Domestic Potential
Indonesia’s low vehicle ownership rate—just 99 per 1,000 residents, compared to 275 in Thailand and 490 in Malaysia—offers substantial room for growth. This is reinforced by improving infrastructure and the rise of the middle class.
Minister Agus noted that the sector could become one of the world’s top ten contributors to gross domestic product (GDP) by 2030. He cited the auto industry’s high backward linkage coefficient of 0.975 and forward linkage of 0.835, indicating a strong multiplier effect on other sectors such as steel, electronics, and financial services.
Data from the Ministry of Industry show that automotive manufacturing currently supports 1.6 million jobs. A 2024 report by Astra’s social foundation found the sector’s domestic supply chain valued at Rp 4.5 trillion ($273 million), reflecting extensive involvement from small and medium enterprises.
Incentives and Financing Boost
To mitigate tax policy headwinds—such as the 12% value-added tax hike and rising regional vehicle taxes—the government has introduced a raft of incentives. These include a 3% luxury sales tax subsidy for hybrid vehicles and a 10% VAT subsidy for fully electric cars.
At least 25 provinces have issued tax relief on vehicle registration and transfer fees. Financial institutions are also playing a role. Astra Financial returned as the event’s platinum sponsor, promoting accessible EV financing through light payment plans. Its affiliate, FIF Group, launched the FIFGo digital platform to streamline vehicle financing.
“Astra Financial’s ongoing involvement in GIIAS demonstrates our commitment to growing Indonesia’s automotive sector,” said Project Director Tan Chian Hok. “Affordable installment plans help consumers access their dream vehicles.”
In sum, GIIAS 2025 offers more than just concept cars and flashy unveilings—it marks a pivot point. Amid global economic unease, the show underscores Indonesia’s strategic intent to drive sustainable automotive growth through innovation, policy coordination, and public-private collaboration.
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