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Purbaya urges Toyota to move production from Thailand

In an attempt to urge the Japanese auto giant to set up its regional hub in Indonesia, the finance minister has indicated the government’s readiness to offer a slew of incentives across related sectors, from steel to financial services.

Ni Made Tasyarani (The Jakarta Post)
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Wed, August 5, 2026 Published on Aug. 5, 2026 Published on 2026-08-05T10:40:12+07:00

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Imported Toyota cars are parked on a dock on Wednesday after they were unloaded from a cargo vessel at the DaChan Bay Terminals in Shenzhen, China. Imported Toyota cars are parked on a dock on Wednesday after they were unloaded from a cargo vessel at the DaChan Bay Terminals in Shenzhen, China. (Reuters/-)

F

inance Minister Purbaya Yudhi Sadewa has offered incentives to Toyota in an attempt to lure the Japanese automotive giant to relocate its regional manufacturing hub from Thailand to Indonesia.

“We will support Toyota. But bring your main manufacturing activities from Thailand to Indonesia,” he said on Tuesday while visiting the Gaikindo Indonesia International Auto Show (GIIAS) 2026 in Tangerang, Banten, as quoted by Kompas.com.

Indonesia, as Southeast Asia’s largest car market, was well-positioned to become Toyota’s main production base in the region, Purbaya noted.

“Why should the factory be in Thailand? Maybe because in the past, we had insufficient incentives for foreign investors or maybe our investment climate is not good enough,” he said.

The minister stressed the situation had changed, as the government continued to improve the local investment climate to make it more competitive in attracting manufacturing investments.

He also highlighted the automotive industry’s large capacity, saying it currently employed around 1.5 million workers and possessed output potential of 2.6 million vehicles.

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In addition to relocating its factory, Purbaya urged Toyota to bring “supporting industries” to Indonesia, expressing the government’s readiness to offer incentives for investments across various sectors, from steel, chemicals and electronics to logistics and financial services.

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