Theautomotive industry in Indonesia plays an important role to the economic growth of the nation, contributing 10.16 per cent of the GDP.^[1]Indonesia automotive product exports is currently higher in value than their imports.^[2] In 2017, Indonesia is the17th-largest passenger-vehicle producer in the world and the 5th largest passenger vehicle producer in Asia, producing 0.98 million vehicles.^[3]

Most of the vehicles built in Indonesia are from foreign brands, notablyJapanese, and produced in the country through a joint-venture plant with a local partner or a fully owned plant. While full manufacturing with a high percentage of local components in the country is usually preferred by manufacturers and encouraged by the government, several plants in the country also conducted aCKD assembly. CBU imports of new cars in the country is also allowed since 1999 with considerably light import tariffs, although it is discouraged by the government.

Indonesia predominantly producesmini orcompact MPVs (52 per cent of total production),SUVs and lightpickup trucks under one ton. In 2019, a total 26 per cent of its production output was exported. Around 7.2 per cent of total automobile sales in Indonesia consists of imported vehicles, notably fromThailand,Japan,China,India andSouth Korea.

Most automobile manufacturers in Indonesia (including passenger car manufacturers and commercial truck manufacturers) are a member of the non-governmental Association of Indonesia Automotive Industries (Gabungan Industri Kendaraan Bermotor Indonesia, GAIKINDO).

TheHonda Brio was the best-selling passenger car in Indonesia in 2020 and 2022.

TheToyota Avanza was the best-selling passenger car in Indonesia between 2006 and 2019, and then in 2021.

For the first time since its launch in 2004 and in 2005,Toyota Kijang Innova became the best selling car in Indonesia in 2023 and 2024.

Traditionally Indonesia is a market heavily oriented toJapanese cars like most of its Southeast Asian neighbours. However, while other Southeast Asian markets prefercompactsedans, Indonesian car market has a strong preference to three-rowMPVs.^[4][5][6] In 2019, 96.3 per cent of cars and trucks sold in Indonesia are from Japanese brands.^[7] The percentage is even higher than the proportion of Japanese brands in Japan itself which stood at 90 per cent.^[8] In the same year, around 550,000 cars or 68 per cent of passenger cars sold in Indonesia consisted of MPVs,crossovers and SUVs equipped with three rows of seats.^[7] The percentage is one of the highest in the world. For example, in 2006, models such as Toyota Avanza (16.4%), Toyota Kijang Innova (14.6%), Daihatsu Xenia (7.4%), and Suzuki Carry/Futura (7.3%) had a very high market share. Top ten best-selling models consisted of almost 73 per cent of domestic sales of the vehicles in 2006.^[9]

Japanese manufacturerToyota is leading the market share in Indonesia for decades since the early 80s. Despite that, the largest manufacturer in Indonesia isDaihatsu as several popular Toyota-branded models sold in Indonesia are developed and produced by Daihatsu, which is wholly owned by Toyota since 2016. The subsidiary,Astra Daihatsu Motor (ADM) operates several plants capable of producing a total 530,000 cars per year.^[10] Around 2 out of 5 automobiles sold in Indonesia is produced by ADM.

Apart from Indonesian consumers wanting a large car to carry the whole family, the popularity of MPVs or three-row cars in general could be explained by the regulations and thecar culture that followed after. When the complete ban on car imports on 22 January 1974 by a Decree No. 25/74 was imposed, the Indonesian government also imposed a tax scheme which saw pickup trucks andminibuses withwagon body style free fromluxury goods tax, whilesedan cars were charged a 100% luxury goods tax. As the result, a sedan of any size became a luxury-type vehicle for most consumers while minibuses became more popular, even when at the time, despite its natural practicality, tended to be much less comfortable to drive or to ride in.^[11] As the result, unlike its neighbouring countries in Southeast Asia that prefers mostly compact sedans, Indonesian consumers are predominantly buying three-row MPVs.

According to GAIKINDO, 82 per cent of the national automobile sales in 2018 is contributed by theisland of Java.^[12] In 2017,West Java province contributed 19.6 per cent of the national car sales at around 207,000 vehicles,Jakarta at 19.3 per cent, andEast Java at 13.1 per cent.^[13][14]

The first motor vehicle to arrive in Indonesia is reported to have been a GermanHildebrand & Wolfmüller two-cylinder motorcycle, brought in by Briton John C Potter who was a machinist at the Oemboel Sugar Factory inProbolinggo, East Java.^[11] The first car arrived shortly thereafter, an 1894Benz Viktoria belonging toPakubuwono X, theSusuhunan ofSurakarta.^[15]

Local production of automobiles began in 1964, originally with SKD assembly of imported cars and commercial vehicles.^[16]

Some motor vehicle building activities did take place before independence: Between 1901 and 1903,Max Wenkel is reported to have built someWenkelmobil cars.^[17] In 1927, N.V. General Motors was set up in Tanjung Priok and started assembling cars and trucks.^[18] N.V. Demmo started makingDKW-engined, three-wheeled vehicles in Surabaya in the 1930s.^[19]

From 1969, the National Plan for Industrial Development was aimed at substituting imports in all areas of manufacture.^[20] A series of laws were enacted in the following years to create this situation, affecting passenger cars as well as commercial vehicles.^[16] Gradual limitations on CBU vehicle imports were introduced, reaching a complete ban on CBUs by 1974.^[20] A localization program commenced with Decree no. 307 of 1976. This law included a provision requiring the bodies for cargo vehicles of a one-ton capacity or less to be made locally beginning in 1978.^[21] The new law then led to a series of subsequential decrees designed to minimize its harmful impacts.

Beginning in 1980, new rules were also enacted to inhibit the sprawl of brands, with the government limiting local assembly to 71 models of 42 different makes.^[20] All assemblers and agents were to be forced into eight separate groups manufacturing everything except engines. Engines were to be supplied by separate corporations.^[22] GAAKINDO, made up in large part of smallpribumi operations, was opposed to these programs and also had an outspokenly anti-Chinese leader from 1981 to 1984.^[23] The companies most in favor of localization were the large Chinese firms like the Liem Group and PT Astra Motor.^[24]

In 1981 the government declared that no engine built in Indonesia was to be of less than one liter's displacement by 1985. As a result, manufacturers of localmicrovans and trucks scrambled to install larger engines.^[25] Daihatsu and Suzuki already manufactured suitable engines for other vehicles, but Mitsubishi did not and used a Daihatsu engine for a few years, while Honda withdrew from the mini pick-up/microvan segment. In October 1982, theVAT on certain diesel vehicles were raised dramatically. Dieselsedans andstation wagons, as well as dieseloff-roaders, were hit with a 40 per cent VAT, while light commercial vehicles (Category 1) in the form of small trucks, pickups, and passenger vans received a twenty per cent VAT.^[26] Some commentators expected this to spell the end of diesel vehicles in Indonesia.^[27]

In 2007 the Indonesian government announced a set of tax incentives intended to help develop a "Low Cost Green Car" (LCGC) as an Indonesian people's car. The initial rules required a low price, set lower for villagers, afuel efficiency of at least 20 km/L (56 mpg_‑imp; 47 mpg_‑US), and at least 60 per cent domestic content.^[28] A few projects were shown but none made it to market, and in May 2013 a new set of regulations was issued, meaning a 0% luxury tax for cars under 1,200 cc (1,500 cc for diesels) as long as they could meet the same 20 km/L mileage goal. The luxury tax is between 50 and 75 per cent for larger and less fuel efficient vehicles.^[29]

Indonesia levies an import tax of 10% on foreign imported luxury cars, while the import tariff for imported cars from outside the free trade area is currently at 50 per cent.^{[30][31][32][33]}

From 1969 until 1975, sole agents and assemblers were represented by separate groups, GAM (Gabungan Assembler Mobil) and GAKINDO.^[34] In 1972 the government decreed that assemblers and agencies be consolidated and since 1975 the industry was represented by the unified GAAKINDO trade group (Gabungan Agen-agen dan Assembler Kendaraan Bermotor Indonesia, "Association of Indonesia Sole Agents and Automobile Assemblers").^[35] In the first half of the 1980s, GAAKINDO was an outspoken opponent of the government's localization programs.^[23] In 1985 the group was reconsolidated into a new organization called GAIKINDO (Gabungan Industri Kendaraan Bermotor Indonesia, "the Association of Indonesia Automotive Industries").

The dominant manufacturer in Indonesia is theAstra International, which is indirectly controlled byJardine Matheson; their products represented around half of the annual vehicle sales in Indonesia in the early 2010s – in large part thanks to the success of theToyota Kijang.^[36]

Most cars sold in Indonesia were originally European in origins; In the 1950s, the most popular cars wereMorris andAustin.^[37] Japanese imports commenced on a small scale in 1959 with the Mitsubishi Jupiter truck, but by the 1970s this had changed considerably as the Japanese took an ever-growing share of the market. Japanese cars was first imported by the government in 1961 as a fleet forcooperative across Indonesia. It was aToyota Land Cruiser Canvastop. The main reason the Toyota was picked is its low price compared to the nominatedLand Rover. At the same year, A.H. Budi, the founder of Nasmoco Toyota dealership network in Central Java bought aToyopet Tiara from an importer in Jakarta. Impressed by the quality of the car, Budi founded the PT Ratna Dewi Motor Coy to retail Toyota cars.^[11]

The January 1974Malari incident started as a protest against Japanese trading practices and included the burning of a Toyota dealership, but sales of Japanese cars reached new heights soon afterwards.^[37] By 1980, from 181,100 new registrations, 88.5 per cent were Japanese in origin.^[38]

In Indonesia, the import, marketing, distribution, and after sales service rights of foreign brands are usually held by firms called ATPMs (Agen Tunggal Pemegang Merek, "sole trademark-holding agent").^[39] ATPMs may be foreign or locally owned, with certain differences to their licensing requirements and scope. Foreign firms, for instance, may not sell directly to Indonesian consumers (Agency), although Distribution may be foreign-controlled.^[39] ATPMs may carry out the manufacture under license, or contract the manufacture to third parties (subject to approval of the principal), or may simply act as distributors and retailers. In the case of special-bodied vehicles, such as theangkots offered by manybody builders (karoseri, fromDutch:carrosserie), ATPMs also have relationships with specific companies and often sell their designs through their own showrooms.^[40]

NV Spemotri was BMW's main importer of motorcycles during the 1950s; they mainly brought in the 250cc one-cylinder R25,R26, and R27.^[41] A handful ofBMW 700s were imported to Indonesia by NV Spemotri in the early 1960s; theSalim Group held the import rights until they sold the tiny concession to the Astra Group in the late 1970s.^[36] Astra sells BMW through a wholly owned subsidiary called PT Tjahja Sakti Motor. The first BMW to be assembled locally was the520/4, which was sent CKD and built in Jakarta by PT Indonesia Service Coy. 780 E12 were assembled from 1976 until 1981, with the 520/6 replacing the four-cylinder in 1978.^[42] Indonesia Service Coy later built the E28, E30, E36, and E34 models, until assembly was taken over by the PT Gaya Motor company in 1993.

As of April 2001, BMW has their own wholesale company in Indonesia, PT BMW Indonesia, although Astra continues to assemble BMW automobiles through PT Gaya Motor.^[43] Assembly is currently of a limited variety ofsemi-knocked down cars, while the remainder of the range is available CBU.^[42]

From 1973, when PT Astra gained distribution rights, until the 1980s, PT Daihatsu Indonesia distributed Daihatsus while assembly was carried out by Gaya Motor – both companies were located inNorth Jakarta. PT Daihatsu Indonesia was a joint venture between a Japanese holding company (30%) and PT Astra International (70%), while PT Gaya Motor was a joint venture between the Indonesian government, PT Astra International, PT Multi France and PT Multi Astra.^[44] Gaya Motor was a general assembler and also built Peugeot and Renault automobiles in the early 1980s.^[44] Daihatsu'sHijet was very popular in Indonesia, especially after the larger one-litre engine from theCharade was introduced – one out of eight four-wheeled vehicles built in Indonesia in 1983 was a Hijet.^[25]

In 2003, Daihatsu through PT Astra Daihatsu Motor (ADM) launched its joint project with Toyota, which spawned theToyota Avanza andDaihatsu Xenia.^[45][46][47] Both cars are designed according to Indonesian needs in mind. As an entry-level MPV, it complements the role ofToyota Kijang, offering similar capability in a smaller and cheaper package. Both cars would later send Astra Daihatsu Motor as the largest car manufacturer in the country, surpassingToyota Motor Manufacturing Indonesia, and saw the Avanza as the best selling car in Indonesia since 2007 until today. 40.8% of Indonesia's total vehicle production output (four-wheel or above) in 2019 was contributed by ADM.

Honda first entered Indonesia in the 1960s through PT Imora Motor as its sole national distributor, with its first modelHonda T360 pickup. In 1972, Honda also introduced the two-doorCivic to the country.^[48] As a response to the vehicle import ban, PT Prospect Motor began local assembly of Honda automobiles in Sunter, North Jakarta. The brand then gained reputation for its passenger cars, contrary to several other Japanese brands which relied on commercial pickups and minivans. Honda's best selling products at the time were the Civic andAccord.

In 1999, Honda established a new joint venture company, PT Honda Prospect Motor (HPM), which took over Imora Motor's sole national distribution rights that same year. HPM integrated Honda's Indonesian automobile businesses, which was previously conducted by four separate companies ranging across vehicle assembly, engine and component manufacturing, and wholesale distribution. A new manufacturing plant in Karawang was opened in 2003.

Hyundai cars has been in the Indonesian market since the 1990s. It was handled by "PT Hyundai Mobil Indonesia (HMI)" as the sales company with the authorized assembling company entitled to "PT Hyundai Indonesia Motor", which assembled Hyundai cars in Indonesia since 1996.

In 2019,Hyundai Motor Company signed anMoU with theIndonesian Government to conduct business of Hyundai automobiles directly inIndonesia, especially to foster the production ofelectric vehicles, theHyundai Ioniq 5 in the country. Since 2019, Hyundai sales company is directly handled by Hyundai Motor Indonesia (HMID) with its head office atSouth Jakarta, and the newly built advanced manufacturing plant,Hyundai Motor Manufacturing Indonesia (HMMI) located atCikarang,Bekasi Regency,West Java, both subsidiaries ofHyundai Motor Company.^[49]

To welcome and enhance public relations, Hyundai Indonesia initiated to welcome the general public to visit and tour itsplant inCikarang, to witness the automotive manufacturing process directly. The first initiative from the automotive industrial sector in Indonesia.^[50]

The history of Mercedes-Benz in Indonesia began back in 1894, when The Susuhunan of Surakarta bought a Benz-model Phaeton (2000cc, 1 cylinder, 5 hp, for eight people). This was also the first car in Indonesia.^[51]

In 1970,Mercedes-Benz collaborated withVolkswagen to set up a manufacturing line inTanjung Priok, Jakarta, for the Indonesian market.^[52] The manufacturer then named as PT German Motor Manufacturing, with another company named PT Star Motor established as the sole agent for Mercedes-Benz vehicles in Indonesia. The factory in Tanjung Priok then began producing Mercedes-Benz commercial vehicles, which included the legendaryMercedes-Benz 911 trucks. In 1973, the assembly line in Tanjung Priok started producing Mercedes-Benz passenger vehicles.

In 1978, the Wanaherang plant inBogor Regency was established, together with the opening of Apprentice Training Center and After Sales Service in Ciputat. This was followed by the break-up of the cooperation with Volkswagen in 1979.^[52]

In 1981, the truck production commenced. One year later, in 1982, the Wanaherang plant officially opened. In 1985, PT Star Engines Indonesia was established in Wanaherang. PT German Motor Manufacturing became the first ISO 9001-accredited automotive maker in Indonesia in 1996. It then acquired the PT Star Engines Indonesia in 2000.

Following the changing name of its parent's name from Daimler-Benz AG into DaimlerChrysler AG, PT German Motor Manufacturing then changed its name into PT DaimlerChrysler Indonesia in 2000, followed by PT Star Motors Indonesia changed into PT DaimlerChrysler Distribution Indonesia in the same year. AfterDaimler AG broke up withChrysler, PT DaimlerChrysler Indonesia changed its name into PT Mercedes-Benz Indonesia (MBI). The same happened to PT DaimlerChrysler Distribution Indonesia, which became PT Mercedes-Benz Distribution Indonesia.

In October 2023, UK-basedInchape plc and local automotive companyIndomobil through a 70–30 joint venture took over Mercedes-Benz passenger car business, PT Mercedes-Benz Indonesia and PT Mercedes-Benz Distribution Indonesia, from Mercedes-Benz AG.^[53]

Mitsubishi, throughPT Krama Yudha Tiga Berlian Motors (KTB) has a long presence in Indonesia, but their first true hit was the Colt T120. This was a locally built version of the first generationMitsubishi Delica, and from its introduction in the early 1970s it became a seminal vehicle. It was mostly alone in its class and for a generation of Indonesians "Colt" became synonymous with minibus.^[54] The T120 was finally discontinued in 1982 and replaced by the L300 (also based on the Delica); but sales never reached their earlier highs. Mitsubishi finally revived the T120 nametag with a Mitsubishi-engined version of theSuzuki Carry Futura called the Mitsubishi Colt T120SS.^[54] This alliance with Suzuki was an attempt to challenge the dominance of the Astra Group's Toyota, Daihatsu, and Isuzu.^[55]

In 2014, Mitsubishi Motors Corporation announced to build an MMC-owned plant in Indonesia. On 24 March 2015, the construction of a new manufacturing plant inCikarang, West Java was started. The plant was designed with a maximum production capacity of 160,000 vehicles per year. PT Mitsubishi Motors Krama Yudha Indonesia owned 51% by MMC was established to operate the plant. The plant was started its operation in April 2017 by producing theMitsubishi Pajero Sport. At the same time, the passenger cars and LCV operations were transferred from PT KTB to PT Mitsubishi Motors Krama Yudha Sales Indonesia (MMKSI).^[56][57]Mitsubishi Xpander was launched in August 2017 and nearly doubled Mitsubishi Motors sales in the country between 2017 and 2018 from 79,807 units to 142,861 units, emerging as the largest market for MMC. In 2019, MMKI surpassedToyota Motor Manufacturing Indonesia as the second largest car manufacturer in Indonesia by a production output of 193,954 units.

PT Suzuki Indomobil Motor is a joint venture betweenSuzuki Motor Corporation and theIndomobil Group. Until recently, the company was known asPT Indomobil Suzuki International. The company is located inJakarta,Indonesia and specialized in manufacturing Suzuki vehicles for the local market. Their first products were theST10 Carry andFronte LC20 of 1976. The Carry (soon replaced by the ST20) saw extensive use as anAngkot.^[58] Suzuki's first Indonesian activity was in 1970 through its import firm PT Indohero Steel & Engineering Company. Six years later they had built their manufacturing facility in Jakarta, which is the oldest part of the Indomobil Group. Suzuki's sales rose exponentially in the mid-1980s as sales of minitrucks boomed and theForsa/Swift was introduced: Suzuki Indonesia sold 13,434 vehicles in 1984, followed by 58,032 in 1985.^[59]

Since 2004, Suzuki Indonesia'sAPV (All Purpose Vehicle) budgetMPV has been assembled exclusively inIndonesia. Designed in Japan, it is exported to numerous countries since 2005, to the ASEAN and beyond. It is also available with Mitsubishi badging (as the "Maven").

PT Toyota Astra Motor (TAM) was founded in April 1971.^[60] Vehicle production began in September 1974 at the PT Multi-Astra manufacturing subsidiary.^[60] Toyota Indonesia's most famous product is theKijang series of light trucks and vans. The Kijang, developed from the Philippine market Tamaraw Revo of 1976, has spawned an entire range of vehicles and is now built in a number of Asian countries including India. The Kijang was one of a series of BUV's, orBasic utility vehicles, developed for developing markets by several global manufacturers in the 1960s and 1970s. The Kijang was very successful for Toyota Astra Motor, with the 100,000th example leaving the line in February 1985.^[61] Production was almost entirely localized by the mid-eighties, with engine parts as well beginning to be produced in Indonesia by January 1985.^[61] The Kijang also caused major upheavals among Indonesia's host of small body builders, as the body was built to a whole new standard of quality and was offered directly by Toyota in a number of variants that had hitherto been the purview of the body builders.^[40] The success of the Kijang was helpful for TAM as theCrown,Mark II,Land Cruiser, andCorona GL were all struggling in the market place in the first half of the 1980s.^[62]

The Land Cruiser dominated the "Jeep" category until the early 1980s, when lighter and more economical competitors began taking away its market share.^[62] Unable to compete with the smaller offerings from Suzuki and Daihatsu, Toyota chose to not further increase the local content levels of the Land Cruiser and had withdrawn it from the Indonesian market by 1986.^[63] Currently Toyota Astra Motor's production is carried out by PT Toyota Motor Manufacturing Indonesia (TMMIN), which consists of the erstwhile PT Multi-Astra as well as PT Toyota Mobilindo (which was established in December 1976 with production commencing in May 1977).

Toyota and the Astra Group remains dominant in Indonesia, with their market share historically hovering from 35 to 50 per cent. They are bigger than the two-second biggest brands combined.^[64]

Volkswagen and their local partnerPT Garuda Mataram was a major player until the mid-1970s but sales dropped precipitously in the latter half of the decade. In 1970, Volkswagen entered into a collaboration withMercedes-Benz Distribution Indonesia to set up a manufacturing line in Tanjung Priok, Jakarta. The resulting company was calledPT German Motor Manufacturing, with Garuda Mataram retaining the Volkswagen distribution rights. The partnership was dissolved in 1979 and Volkswagen went their own way.^[65] In or just before 1971 Indonesia's Army Strategic Command (Kostrad) took over the local Volkswagen operations as part of a trend of direct government involvement in vehicle manufacturing (and industry in general).^[66] Kostrad owned the Volkswagen agency through its Yayasan Dharma Putra business group, in partnership with two Chinese entrepreneurs.^[67]

As with Volkswagen in thePhilippines, sales dropped precipitously as the Japanese brands took hold. By 1980, the locally developedMitra project had come to an end as had assembly of the Beetle and theTyp 181 (Camat). Assembly of German-made Kombis and Transporters ended in 1978.^[68] Volkswagen replaced this on their Indonesian assembly lines with the Brazilian-madeVolkswagen Combi Clipper. This remained Volkswagen's single model on offer in Indonesia until the middle of the 1980s.^[69] By 1986, Volkswagens were no longer available in Indonesia, after 13,162 Volkswagens had been assembled between 1976 and 1985.^[70]

In 1998, a new distributor company calledPT Garuda Mataram Motor was founded as ajoint venture betweenVolkswagen Group andIndomobil Group. Currently, the company assembles and distributes Volkswagens passenger cars in Indonesia.

Wuling Motors (Indonesia) is established in August 2015 as a subsidiary of SAIC-GM-Wuling Automobile Company Limited (SGMW) with share composition 50.1 per cent of SAIC (Shanghai Automotive International Corporation), 44 per cent of GM China and 5.9 per cent Guangxi Automobile Group. The company has 60 hectares land in Cikarang, 30 hectares is for the manufacturing and 30 hectares is for supplier park for accessibility of the parts.^[71][72][73]

A variety ofGeneral Motors vehicles have been sold in Indonesia, since the early days of the automobile there. General Motors (GM) vehicles have been represented in Indonesia since 1915. GM established their first local assembly operation (pictured) inTanjung Priok in February 1927, as "KN Gaya Motor." The location was suitable as there was ample timber nearby, a necessity for car body manufacture at the time.^[37] In 1930, the company was renamed "N.V. General Motors Java Handel Maatschappij." Cars from their Jakarta factory were exported all across the region. After having been requisitioned by theNetherlands East Indies government in 1941, on 9 March 1942 all machines and equipment was destroyed to avoid it falling into the hands of the approaching Japanese.^[74] Two weeks later the Japanese occupied the plant and interred all foreigners; on 31 December GM wrote off the entire enterprise.^[74] The plant was taken over by Toyota, and was used to assemble trucks for the military.^[75]

In 1946, General Motors Overseas Operations established a Batavia Branch (later renamed "Djakarta Branch") to continue the pre-war activities, building nearly 20,000 vehicles in the next six years.^[74] By 1953, activities had mostly ended as Sukarno's pro-Chinese government took power. As of 1954 local partner PN Gaya Motor continued alone; the Indonesian government took over the assets in April 1955. GM dissolved this paper operation a year later.^[74] The government-run operations did not take good care of the plant and 60 percent of the run-down assets were sold toPT Astra Motor (who, coincidentally, had gotten their start by being allowed to import 800 Chevrolet trucks in 1967) in 1969.^[76] Astra had expected to sell Chevrolets but were denied the contract and ended up importingToyotas instead.^[76]

A number of other, smaller companies proceeded to import and assemble a variety of GM products. Udatimex/Udatin has generally handled Holdens, while Garuda Diesel/Garmak has sold Chevrolets, Opels, and the short-livedMorina nationalBasic Transportation Vehicle project.^[77] In the early 1970s, PT Kali Kuning (Jakarta) also imported Opels, particularly theRekord D. Chevrolet, Holden, Opel, and Isuzu badging have been used, often placed on the same cars by the various importers.

At the time of their 1959 introduction to Indonesia (although Holden-built Chevrolets first arrived in 1938) Holdens were sold by Gaya Motor. After gaining some popularity in the 1960s Udatimex (part of Fritz Eman's Udatinda Group in Jakarta) took over in 1970. Another sub-company, PT Udatin, acted as the assembler. From 1954 until 1959, Holden Australia held the General Motors rights to all of Australia and Indonesia. The first Holden to arrive in Indonesia was theFC series.^[78] Sales increased considerably when the locally assembledHolden Gemini arrived in 1981. Other locally assembled Holdens were the Torana, Commodore, Statesman, Kingswood, and Premier. In the early 1970s, theHQ Statesman was sold as the "Chevrolet 350" by Garuda Diesel (Chevrolet's sole agent in Indonesia), while the Statesman was sold in parallel by Udatimex.

Garuda also developed an SUV version on the basis of theIsuzu KB, called the Holden Lincah. This was superficially very similar to theIsuzu Trooper, but had locally developed bodywork. A small number of Lincahs were exported to neighboring andPacific Island countries in the middle of the 1980s.^[79] A five-door version of the Lincah was also developed, called the Lincah Gama, but may never have entered production. The Lincah Gama was one of the many carsMalcolm Bricklin planned on importing, following his success with theYugo.^[80] While the Gemini Diesel remained popular with taxi operators, with passenger car sales slowing down Udatimex shut their doors in 1991, and regular imports of Holdens came to an end. The last new Holden introduced in Indonesia was theVL Calais. Even as the Indonesian automobile market has grown rapidly after the Asian Crisis Holden did not return, as GMH's export manager Bob Branson decreed the end of exports to countries with annual sales of less than 500 cars in 2001.^[81]

Opels had also been very popular before the war, with theOpel P4 being assembled in Tanjung Priok. A locally bodied 7-seater taxibus arrived in 1932; an ambulance version was added in 1933.^[82] The taxi model was calledOplet (short for the trade name "Opelette") - a name which was used forshare taxis in general until the type was abolished in 1979.

In January 1993, GM re-established its presence in Indonesia by forming PT General Motors Buana Indonesia, which is owned 60% by GM and 40% by local partner and previous importer/assembler PT Garmak Motor of Indonesia.^[83] The company built a plant with 15,000 vehicle capacity inBekasi, West Java.^[74] In 1997, General Motors took full control of the company. The first locally made product of the new company was theOpel Vectra (1994), followed by theOpel Optima and theOpel Blazer SUV, becoming the first right-hand drive Blazer in 1995.^[74] As of 2002, the Chevrolet nameplate has replaced Opel in Indonesia.^[74]

Chevrolet was one of the most popular brands in Indonesia until the 1960s. In particular the 210-series sold well. Later, the Chevrolet badge was mainly used on various Isuzu products like theChevrolet LUV andTrooper.

The brand was re-introduced in Indonesia in 2001 with the Chevrolet Tavera, a rebadgedIsuzu Panther, and the importedZafira and Blazer V6 4x4.^[84] In 2002, the locally assembled Opel Blazer was renamed toChevrolet Blazer. It was sold alongside GM dealers, known as GM AutoWorld also marketed theSubaru Forester andSubaru Impreza since 2002.^[85]

In 2005, GM ended Blazer production in Indonesia, effectively rendering their manufacturing plant in Bekasi as dormant. GM then imported and soldChevrolet-badged Daewoo cars from Thailand and South Korea. In 2013, the plant was reopened to manufacture theChevrolet Spin MPV for the Southeast Asian market. Prior to the reopening, GM stated that the Bekasi plant was a critical part of GM's growth strategy in Indonesia and Southeast Asia. The plant's location met GM's philosophy of "build where we sell and source where we build."^[86] The plant was closed in 2015, and all 500 employees were laid off. Chevrolet vehicles were then imported until 2020.

Mazda MR90

Mazda Baby Boomer

Mazda Vantrend

Mazda first entered the Indonesian market in the 1960s as an imported brand. In 1985,Indomobil started manufacturing Mazda vehicles in Indonesia through its fully owned plant and was distributed through PT National Motors Co. (nowPT Unicor Prima Motor), another Indomobil subsidiary.^[87] In 1989, Indomobil together withSumitomo Corporation started work on thePT Mazda Indonesia Manufacturing (MIM) plant through ajoint venture.^[88] The plant would manufacture the Mazda MR90, a car based on thethird generation Mazda 323 Familia. With the support of PresidentSuharto, the MR90 was designated as a 'people's car' to compete directly with theToyota Kijang. MR90 stands for 'Mobil Rakyat 1990', ('people's car of the 1990s'), as the car was introduced around July 1990. To achieve a competitive price for the car, and with the support of Suharto, Indomobile requested that the government remove the 30 per cent luxury goods tax. This proposal was unexpectedly rejected by theFinance Ministry, citing the absence of a 'national car' regulation and the fact that the car is categorized as asedan - which meant it ould only be considered a luxury good. As the result, sales were below expectations by an order of magnitude, since the car ended up significantly more expensive than the Toyota Kijang.^[89] The Mazda MR90 was later revised and renamed to Mazda Vantrend and Mazda Baby Boomer, hoping to improve sales. In 1998, PT MIM went bankrupt in the midst ofSoutheast Asian financial crisis and the plant in Tambun was sold toSuzuki.^[89]

Between 1998 and 2006, Mazda cars were imported and distributed by PT Unicor Prima Motor before the distribution was taken over by Mazda Motor Corporation, creatingPT Mazda Motor Indonesia as the sole importer and distributor.^[90] The handover marked the end of production of the locally assembledMazda E2000 which was introduced in 1996,^[91] and also saw PT Unicor Prima Motor transformed intoChery car distributor.^[92] Mazda Motor Indonesia solely relied on importing its line-up of vehicles from Japan, Thailand and the Philippines, except the Suzuki-madeMazda VX-1 (a rebadged Ertiga).

In 2017, Mazda Motor Corporation transferred its operations in Indonesia toPT Eurokars Motor Indonesia.^[93] Mazda remained an import brand, sourcing Mazda vehicles from Japan, Thailand and Malaysia.

In 1996, the Ministry of Industry and Trade announced a president instruction (Inpress) No. 2-year 1996 regarding the development of the national car industry, instructing the Minister of Industry and Trade, the Minister of Finance, and the State Minister for Mobilization of Investment Funds to immediately realize the national car industry. It also mentioned the pioneer company to do so isPT Timor Putra Nasional (TPN), owned byHutomo Mandala Putra, the son of presidentSuharto. TPN is the only car manufacturer to be declared free fromluxury goods tax.^[94] TPN partnered withKia Motors to importKia Sephia sedan as the Timor S515i by a semi knock down (SKD) scheme. The sedan was introduced on 8 July 1996. Due to its low price, the car quickly gained some traction in Indonesia.

However, several countries such as Japan, the United States, and theEuropean Communities immediately protested the national car program and privilege of Timor cars. A lawsuit was then brought to theWorld Trade Organization (WTO). The program was declared incompatible with WTO rules by Dispute Settlement Body of WTO in 1998. It was proved that the "national car program" violated the World Trade Organization Agreement on Subsidies and Countervailing Duties because the exemption from taxes is a subsidy contingent upon the use of domestic goods.^[95] As such, the company had to stop its operations by a presidential decree (Keppres) No 20 1998 issued on 21 January 1998.

Volvo automobiles have been regularly imported to Indonesia since 1971, whenLiem Sioe Liong'sPT Central Sole Agency gained the concession.^[96] By 1975, industrial policy dictated that the cars be assembled locally and Liem responded by creating a joint venture called PT Salim Jaya Motor, operated by his son Albert. A small number of heavy trucks were also imported. They assembled two Volvo models and had a steady market in the form of military and government officials. The venture still lost money though, partly due to the difficulties of collecting money from government officials during the Suharto era. Even with government favor, sales were never very large: between 1976 and 1985, only 1015 Volvo passenger cars (and 201 heavy trucks) were assembled in Indonesia.^[97]

TheSalim Group still imports Volvo trucks, buses, and construction equipment as of 2017, through a company called PT Indotruck Utama.

This section needs to beupdated. Please help update this article to reflect recent events or newly available information.(November 2021)

Indonesia imposesluxury goods tax (Indonesian:Pajak Penjualan atas Barang Mewah (PPnBM)) based on engine displacement and body type.^[98] While dimensions aren't used in the classification,sedan andstation wagon body type are taxed differently. This tax scheme was phased out in October 2021 in favour of an emission-based classification.^[99]

A vehicle is considered a sedan if the rear window is not a part of the rear trunk opening.

Classification used until October 2021

Automobile manufacturing facilities in Indonesia is currently focused in the western part ofJava, mainly in theJakarta–Cikampek Toll Road corridor inBekasi andKarawang, where fewindustrial estates are located there.

• Motor vehicle manufacturers of Indonesia
• Industry in Indonesia
• Manufacturing in Indonesia
• Transport in Indonesia
• Automotive industry by country

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