Jakarta. Sales of commercial vehicles in Indonesia remained sluggish in the first half of 2025, reflecting continued pressure on the real sector. The Association of Indonesian Automotive Industries (Gaikindo) warned that without greater regulatory certainty, the country risks stalling its automotive industry’s long-term growth.

Gaikindo Secretary General Kukuh Kumara said commercial vehicles represent long-term investments, which require consistent and predictable policies to thrive.

“These vehicles aren’t just used for 5 or 10 years — they’re investments that span 20 to 30 years. We need investor-friendly policies that offer long-term certainty,” Kukuh told Beritasatu.com during the Gaikindo Indonesia International Auto Show (GIIAS) 2025 at ICE BSD, Tangerang, on Tuesday.

Gaikindo identifies regulatory unpredictability, coupled with a sluggish economy and slow-moving infrastructure projects, as key factors holding back the sector.

Retail sales data from Gaikindo showed sharp year-on-year declines across most commercial vehicle categories. Pickup trucks with a gross vehicle weight (GVW) under 5 tons dropped from 50,709 units in the first half of 2024 to 47,325 units in the same period this year. Light trucks (5–10 tons GVW) fell from 20,891 to 17,891 units, while medium trucks (10–24 tons GVW) dipped slightly from 2,068 to 2,002 units.

The only bright spot was in the heavy truck segment (GVW over 24 tons), where retail sales rose from 7,551 to 8,087 units, suggesting some resilience in the mining and heavy logistics sectors.

Kukuh said that if the government can foster a more stable regulatory environment that supports long-term investment, the commercial vehicle market could rebound, particularly as mining, logistics, and infrastructure activities begin to recover.

He added that policy certainty must become a cornerstone of future industrial strategies to help Indonesia maintain its edge as a competitive manufacturing hub and attract more investment into the automotive sector.

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