Indonesia Auto Industry Urges Tax Holiday Revival to Halt Wave of Lay-offs

2025/09/10
Policy
-
Indonesia
Malaysia
GAIKINDO urged Jakarta on 8 Sept for swift intervention to stop automotive lay-offs. Jan-Jul 2025 retail sales fell 10.8 % to 453 k units, cutting component output by 28 %. Some suppliers have cut 3-23 % of staff since mid-2024. The lobby wants the pandemic-style PPnBM DTP tax holiday restored for vehicles with >60 % local content to lift demand, warning that rising CBU truck imports and EVs’ lower parts count have eroded over 38 % of the traditional market; the government has the final say.
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Indonesia Auto Industry Urges Tax Holiday Revival to Halt Wave of Lay-offs
GAIKINDO urged Jakarta on 8 Sept for swift intervention to stop automotive lay-offs. Jan-Jul 2025 retail sales fell 10.8 % to 453 k units, cutting component output by 28 %. Some suppliers have cut 3-23 % of staff since mid-2024. The lobby wants the pandemic-style PPnBM DTP tax holiday restored for vehicles with >60 % local content to lift demand, warning that rising CBU truck imports and EVs’ lower parts count have eroded over 38 % of the traditional market; the government has the final say.
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