Jakarta. Automotive companies are holding off on raising vehicle prices despite mounting pressure from the rupiah’s sharp depreciation and higher interest rates, as companies seek to protect consumer demand in Southeast Asia’s largest car market.

The rupiah has weakened close to the Rp 18,000 per US dollar level in recent weeks, while Bank Indonesia has raised its benchmark interest rate to stabilize the currency and contain inflationary pressures.

The twin pressures are increasing costs for automakers that still rely partly on imported components, while also threatening consumer purchasing power as financing costs rise.

Major car brands, including Toyota Astra Motor, Astra Daihatsu Motor, BYD Motors Indonesia and Chery Sales Indonesia said they are reviewing the impact of the weakening currency and rising rates, but are not planning immediate price increases.

“We appreciate the government’s efforts to maintain economic stability,” said Bansar Maduma, marketing director of Toyota Astra Motor.

According to Bansar, higher interest rates are expected to help stabilize the rupiah, maintain market confidence and control inflation risks. Toyota is currently monitoring how the rate hike will affect commercial banks and financing institutions that support vehicle purchases.

Indonesia’s automotive market has shown signs of recovery despite broader economic uncertainty. Toyota said its wholesale sales jumped 42% in April to around 25,000 units.

To sustain demand, Toyota and its financing partners are offering lower down payments, longer loan tenors and more flexible installment schemes, including guaranteed resale value programs for hybrid models.

Meanwhile, Daihatsu said it was still assessing how leasing companies would respond to the 50-basis-point increase in the BI Rate.

Sri Agung Handayani, marketing and corporate communications director at Astra Daihatsu Motor, said currency fluctuations were putting pressure on the industry because some components are still imported.

“Adjustments are inevitable,” she said, adding that the company was focusing first on internal efficiency measures rather than passing costs directly to consumers.

Daihatsu said it has not raised vehicle prices in the past four months and is instead restructuring costs and improving manufacturing efficiency to preserve affordability.

The company added that more than 80% of its vehicle components are already sourced locally, although it is accelerating localization efforts further to reduce dependence on imports if rupiah pressure persists.

Chinese automaker Chery said it was calculating the potential impact of rising operational and production costs on future vehicle prices.

“We are still evaluating because costs are rising across the board,” said Zeng Shuo. “If costs continue to increase, there is a possibility prices could also rise.”

Electric vehicle maker BYD also acknowledged the possibility of future price adjustments, although it said no increases were planned in the short term.

Luther Panjaitan said the company remained confident in its pricing and promotional strategy but warned that weakening purchasing power could weigh on the entire automotive industry.

“This is no longer just about EVs, gasoline cars or hybrids,” Luther said. “If purchasing power weakens, the whole industry will feel the impact.”