The government plans to introduce a new national car. The Minister of Industry, Agus Gumiwang Kartasasmita, revealed this in mid-February during the opening of the Indonesia International Motor Show (IIMS) 2025.
According to him, the government has been in discussions with several manufacturers to realize this idea.
Dr. Jayan Sentanuhady, a lecturer at the Department of Mechanical Engineering, Faculty of Engineering (FT UGM), welcomed the government’s plan but noted that realizing a national car comes with several challenges that Indonesia has faced for some time.
Dr. Sentanuhady mentioned that these challenges stem from Indonesia’s automotive market being dominated by long-established competitors, such as Japanese products, which are now joined by competitors from Korea and China.
Car sales in Indonesia, reaching 850,000 units in 2024, indicate, according to Dr. Sentanuhady, that there is market potential for a national car to compete.
However, the potential that can be achieved must also go through several processes, one of which is research and development (RnD) to determine what type of car would suit the Indonesian market.
Of course, this design should be tailored to the public’s preferences based on research conducted by universities and industry.
“People generally tend to prefer compact vehicles or those that can carry many passengers,” Dr. Sentanuhady explained on Thursday (Feb. 27).
But that’s not enough, he added. Nowadays, competitors in the car manufacturing industry also offer a variety of features at affordable prices, one of which is safety features, which have become crucial.
Another aspect that must be considered is the type of engine, especially in the era of motor vehicle electrification.
“Several manufacturers are now focusing on environmentally friendly engines, so if the national car can offer this option, it would be even better,” he said.
Additionally, the production process for the national car cannot immediately rely entirely on local assembly and components.
However, at least initially, non-engine components such as tires and certain other parts could be manufactured by local industries while improving build quality.
Another challenge that needs to be addressed in making a national car is the consumer aspect. Dr. Sentanuhady pointed out that this goes beyond design or features; it is about fostering a sense of love for local products.
Public appreciation for local products needs to be enhanced to support the long-awaited emergence of a national car. He said Indonesians would take pride in owning a national car, and other aspects could improve alongside it.
“There may be challenges, but Vietnam has already proven it with their national car, Vinfast. We can do it too with our capabilities,” Dr. Sentanuhady asserted.
He also mentioned that Indonesia has a long history of efforts to establish a national car. In the 1970s, the Toyota Kijang, which was entirely built and assembled in Indonesia, emerged.
The most well-known names are Timor and Bimantara, which partnered with Kia and Hyundai, the leading car manufacturers in Korea at the time.
However, these products failed along with the fall of the New Order and the accompanying corruption, collusion, and nepotism cases.
Dr. Sentanuhady noted that past failures must be acknowledged to prevent them from happening again.
“The government plays a role in facilitating this plan, for instance, through regulations, incentives, or partnerships with several manufacturers. However, it must be ensured that this process proceeds without any unpleasant issues, as seen before,” he hoped.
Author: Lazuardi
Editor: Gusti Grehenson
Post-editor: Afifudin Baliya
Photograph by: PT Pindad