JAKARTA, Indonesia – Indonesian Finance Minister Purbaya Yudhi Sadewa has urged Toyota Motor Corp. to move its regional production hub from Thailand to Indonesia, offering to provide whatever investment incentives the automaker requires. Speaking earlier this week 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 please move your main production base from Thailand to Indonesia. I will provide whatever incentives you need,” Purbaya said.
He argued that Indonesia’s position as Southeast Asia’s largest economy and most populous country has not yet been fully reflected in its role as a regional automotive manufacturing centre.
“We are the largest country in Southeast Asia, so why is the regional automotive production hub in Thailand?” he said. Purbaya acknowledged that Thailand has long held an advantage over Indonesia in attracting automotive investment, supported by a well-developed industrial ecosystem that includes extensive parts suppliers, supporting industries and integrated export infrastructure.
He said Indonesia had previously been less competitive because government incentives were not attractive enough to investors.
To address this, the Indonesian government plans to simplify business licensing procedures and introduce more competitive incentive packages for automakers. The measures are intended to lower investment costs while providing greater regulatory certainty for companies looking to establish or expand manufacturing operations in Indonesia. Purbaya said he hoped Toyota would consider moving not only vehicle assembly operations but also its wider supplier network to Indonesia.
He added that attracting upstream industries, including steel, electronics, chemicals and automotive parts manufacturers, would strengthen Indonesia’s domestic supply chain and reduce dependence on imported raw materials and components. The comments underline Indonesia’s growing ambition to challenge Thailand’s long-established position as a major automotive manufacturing base in Southeast Asia.
