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Car sales surge shows strong domestic demand: Finance Minister

Jakarta (ANTARA) – Strong growth in domestic car sales reflects resilient consumer demand and household purchasing power across Indonesia, according to Finance Minister Purbaya Yudhi Sadewa.Speaking at the 2026 Gaikindo Indonesia International Auto Show (GIIAS) in Tangerang, Banten, on Tuesday, Minister Purbaya revealed that car sales jumped 32.9 percent year-on-year (yoy) in June 2026, while motorcycle sales rose 1.1 percent yoy.”We are monitoring every variable that indicates current and future economic conditions, and acting quickly to ensure economic growth is not affected by negative developments in the market,” Purbaya said.He noted that the automotive sector's surge is corroborated by several other key indicators reflecting sustained domestic economic activity during June 2026.These include a 13.5 percent yoy increase in domestic cement sales and a 10.8 percent yoy growth in electricity consumption, driven by the household sector (12.3 percent), the business sector (10.0 percent), and the industrial sector (6.5 percent).Meanwhile, the retail consumption index rose to 123.3.”The government will continue to maintain growth momentum through responsive fiscal policies so that domestic demand remains the main driver of national economic growth,” he added.Highlighting the strategic position of the national automotive industry as a major engine of economic growth, the State Treasurer emphasized that vehicle production generates broad multiplier effects across industrial manufacturing, foreign investment, and employment.To sustain this momentum, Purbaya called for closer coordination between state regulators and industry leaders under the Association of Indonesian Automotive Industries (Gaikindo) to enhance competitiveness while supporting the transition toward low-emission vehicle technology.”The challenge going forward is not only to encourage the adoption of electric vehicles, but also to maximize domestic added value, investment, job creation, and strengthen the competitiveness of the national industry,” he concluded.