Tangerang, Banten (ANTARA) – Minister of Industry Agus Gumiwang Kartasasmita said Indonesia is transforming from merely an automotive market to a vehicle production base.At the Gaikindo Indonesia International Auto Show (GIIAS) 2026 in Tangerang on Thursday, he conveyed this as part of the government's three main messages to the national automotive industry.”Indonesia is in the process of shifting from a market-based to a production-based industry,” he emphasized.The minister began by emphasizing that the automotive industry is not merely driven by market forces but also plays a strategic role in strengthening the nation's economic resilience.Amid geopolitical uncertainty and a global economic slowdown, the Indonesian economy continued to grow by 5.6 percent in the first quarter of 2026.Kartasasmita said the manufacturing industry remains the backbone of the economy, contributing 19.07 percent to gross domestic product (GDP) and more than 82 percent to total national exports.He noted that the transportation equipment industry provides added value of more than Rp285 trillion (US$15 billion). However, he stressed that the strength of the automotive industry is not only reflected in its significant contribution to GDP.For the second point, the minister mentioned that Indonesia is now entering a new phase as an automotive production base, as reflected in national motor vehicle production.Throughout the first half of 2026, motor vehicle production reached 615,000 units, representing an 11.3 percent increase compared to the same period the previous year. Meanwhile, wholesale sales increased 15.9 percent to 436,000 units.Kartasasmita said the trend gives him confidence that domestic vehicle sales will reach the 2026 target of 850,000 units.He addressed the domestic automotive market still has significant room for growth, noting that Indonesia has only about 99 cars per 1,000 people, well below Thailand's 275 and Malaysia's 490.He emphasized that the domestic industry must capitalize on this market growth opportunity, not fill it with imported products.Furthermore, the minister explained that exports of completely built-up (CBU) vehicles grew by 7.7 percent, exports of completely knocked down (CKD) vehicles increased by 38 percent, while component exports grew by 46 percent. Meanwhile, imports of complete vehicles actually fell by 49 percent.”These four indicators form a clear pattern: the deeper we move into the value chain, the faster our growth. Indonesia is no longer just exporting vehicles, we are now offering the capability to manufacture them. The supply chain architecture we have built is on the right track, and we must continue to strengthen it,” he conveyed.Meanwhile, the third key point highlighted the need for a multi-track approach to the automotive sector's energy transition, with national sovereignty at its core.Kartasasmita stated that sales of electrified vehicles in the first half of 2026 increased by 69.4 percent to 117,000 units, equivalent to 26.8 percent of total national passenger vehicle sales. Of these, 69,000 units were battery electric vehicles (BEVs).