Indonesia Urges Toyota to Shift Regional Manufacturing Hub From Thailand
Tangerang. Finance Minister Purbaya Yudhi Sadewa on Tuesday publicly urged Toyota Motor Corp. to relocate its regional manufacturing hub from Thailand to Indonesia, pledging to offer whatever investment incentives are needed to support such a move.
Speaking at the Gaikindo Indonesia International Automotive Conference (GIAC) in Tangerang, Banten, Purbaya said Indonesia was prepared to make a more competitive offer to attract one of the world's largest automakers.
"We will support Toyota, but bring your main manufacturing base from Thailand to Indonesia. I will give you whatever incentives you want," Purbaya said.
He argued that Indonesia's advantages as Southeast Asia's largest economy and most populous country have yet to be fully reflected in the regional automotive industry's manufacturing footprint.
"We are the largest country in Southeast Asia. Why is the region's automotive manufacturing hub in Thailand?" he said.
Purbaya acknowledged that Thailand has long outperformed Indonesia in attracting automotive investment, supported by a well-developed industrial ecosystem that includes component suppliers, supporting industries, and integrated export infrastructure.
He said Indonesia had historically been less competitive because the incentives offered to investors were not sufficiently attractive.
To address that, the government is committed to streamlining business licensing procedures and introducing more competitive incentive packages for automotive manufacturers, he said. The measures are intended to reduce investment costs while providing greater regulatory certainty for companies establishing or expanding production facilities in Indonesia.
Purbaya said he hoped Toyota would relocate not only its vehicle assembly operations but also its broader supplier network.
He said attracting upstream industries -- including steel, electronics, chemicals, and automotive component manufacturers -- would strengthen Indonesia's domestic supply chain and reduce reliance on imported raw materials and parts.
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