Inp.polri.go.id - Jakarta.  The 2025 Gaikindo Indonesia International Auto Show (GIIAS) attracted 485,569 visitors, up from 475,084 last year, but vehicle purchases are projected to decline, according to the Association of Indonesia Automotive Industries (Gaikindo).

Automotive expert Yannes Martinus Pasaribu from the Bandung Institute of Technology (ITB) said on Wednesday (6/8/2025) that the drop reflects weakened middle-class purchasing power amid economic pressure. 

“Car prices in the Rp 150–400 million range have risen by about 7% annually, while real income growth is only 4–5%,” he noted, adding that higher food inflation (6.2% in June) and the central bank’s benchmark interest rate of 5.75% have further limited consumer credit capacity.

Gaikindo data shows retail sales fell 9.7% in H1 2025, with June wholesale sales plunging 22.6%. 

Yannes suggested temporary incentives for Low-Cost Green Cars (LCGC) after sales in the segment dropped 28.5% in H1 and wholesales fell 49% in June.

(mg/inp/pr/rs)