Indonesia’s car parts manufacturers

Indonesia’s car parts manufacturers

Indonesia’s car parts manufacturing industry plays a crucial role in supporting the country’s large and growing automotive sector. As Southeast Asia’s largest economy and one of the region’s top automobile producers, Indonesia has developed a comprehensive supply chain for car production, including the manufacturing of auto parts such as engines, transmissions, suspension systems, brakes, electrical components, and body parts.

The country’s car parts manufacturers are mainly located in industrial areas such as West Java (Bekasi, Karawang, and Cikarang), East Java, and Banten. These areas have become automotive manufacturing hubs thanks to their strategic locations, well-developed infrastructure, and proximity to assembly plants operated by leading global carmakers like Toyota, Honda, Mitsubishi, Suzuki, Daihatsu, and Hyundai.

Major Indonesian car parts manufacturers include companies like Astra Otoparts, PT Gajah Tunggal Tbk, PT Indospring Tbk, and PT Selamat Sempurna Tbk. Astra Otoparts, a subsidiary of Astra International, is the largest auto parts company in Indonesia. It produces a wide range of parts including batteries, tires, filters, lubricants, and more. The company also collaborates with foreign partners to bring advanced technologies into the local market.

Indonesia’s car parts manufacturing sector benefits from partnerships and joint ventures with international firms, primarily from Japan, South Korea, China, and Europe. These collaborations have helped transfer technology, boost local skills, and improve quality standards to meet export requirements. Many Indonesian-made parts are exported to countries in Asia, the Middle East, Europe, and the Americas.

The government supports the development of this industry through incentives, tax breaks, and the promotion of local content (TKDN – Tingkat Komponen Dalam Negeri). Efforts to localize more parts production have increased, especially for electric vehicles (EVs), aligning with Indonesia’s ambition to become a regional EV production hub. The development of battery supply chains and electric components is expected to further expand the car parts industry.

Despite global challenges like raw material costs and supply chain disruptions, Indonesia’s car parts manufacturing sector continues to show resilience and growth potential. With increasing domestic vehicle production and a push toward electric mobility, the future of Indonesia’s car parts manufacturers looks promising.