Jakarta, INTI - Indonesian Automotive Parts & Components Industries Association (GIAMM) assesses that the Indonesian automotive component industry remains resilient amid the dynamics of the global industry.
GIAMM Secretary General, Rachmad Basuki, revealed that the automotive component industry is now no longer solely dependent on the domestic market but has also become part of the global production network.
"The component industry has now entered the export phase to various countries as part of the global supply chain," said Rachmad in a statement on Monday, June 29, 2026.
Rachmad expressed that the entry of the national component industry into the global supply chain requires businesses to continuously increase productivity to compete with manufacturers from other countries.
Rachmat believes that the guidance provided by the Ministry of Industry (Kemenperin), including through the Industry 4.0 transformation program, has helped improve factory efficiency and productivity. The various training programs provided are also considered to have accelerated the industry's adaptation to the needs of modern manufacturing.
Four and Two-Wheeled Automotive Industry Growth
He added that government support also played a crucial role during the Covid-19 pandemic. Policies that allowed the industry to continue operating with health protocols and various stimulus packages for the automotive industry were deemed successful in maintaining the continuity of production and domestic demand.
"As the four-wheeled vehicle industry grows, demand for components automatically continues. This is a crucial factor for the component industry," he said.
According to GIAMM data, the four-wheeled automotive industry grew 14% year-on-year (YoY) in the first quarter of 2026. This growth helps the component industry maintain production utilization rates, supported by a relatively stable two-wheeled vehicle market.
Low Carbon Emission Vehicle Program
Meanwhile, the government continues to encourage industrial transformation toward low-emission vehicles through the Low Carbon Emission Vehicle (LCEV) program. This program is accompanied by a target of gradually increasing the domestic content level to 80% to deepen the national industrial structure.
Rachmat said this policy direction provides capital for the component industry to expand its role in the global supply chain.
"The government continues to encourage the industry to enter the global supply chain through various issued policies," he said.
GIAMM recorded that throughout 2025, the Indonesian automotive component industry exported products to more than 100 countries with a value exceeding US$7 billion. The United States, Japan, South Korea, and ASEAN countries remain the main export markets for national automotive components.
Conclusion
Indonesian Automotive Parts & Components Industries Association (GIAMM) assesses that the Indonesian automotive component industry remains resilient because it has become part of the global supply chain and is no longer solely dependent on the domestic market. In the first quarter of 2026, the four-wheeled automotive industry grew 14% annually, supporting component industry utilization, supported by a stable two-wheeled market. Throughout 2025, the Indonesian automotive component industry successfully exported products to more than 100 countries with a value exceeding US$7 billion.
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