The realisation of investments in the automotive industry reached IDR 12.88 trillion during the first semester of 2023, marking a 10.58% increase compared to the same period last year, which amounted to IDR 11.64 trillion. According to data from the Ministry of Investment/Badak Coordination for Investment (BKPM), foreign direct investment (FDI) in the motor vehicle, trailer, and semi-trailer industry amounted to USD 744.43 million from a total of 836 projects in the first semester of 2023. The data, accessed through the website nswi.bkpm.go.id, shows that FDI increased by 1.85% compared to the same period last year, which was USD 730.88 million. Meanwhile, domestic direct investment (DDI) reached IDR 1.52 trillion from a total of 322 projects during the first semester of 2023. The number of DDI projects increased by 204.21% YoY from IDR 502.44 billion.
According to the same data, the largest investment in the automotive sector came from Japan, with a value of USD 525.48 million in the first semester of 2023, marking a 14.15% increase YoY from USD 460.33 million. One of the Japanese manufacturers that executed this investment is Mitsubishi Motor Corporation (MMC). Mitsubishi has invested IDR 5.7 trillion in Indonesia to expand production capacity by 2024. Through PT Mitsubishi Motors Krama Yudha Indonesia (MMKI), they plan to export to 40 countries, including Vietnam, the Philippines, and regions like Latin America and the Middle East. Other manufacturers like Toyota have also injected fresh funds into the country, in line with the production of new models such as the Innova Zenix and Yaris Cross with hybrid variants. For the development of these two models, Toyota Indonesia allocated approximately IDR 4.2 trillion and IDR 2.5 trillion, respectively. These investments are part of Toyota Indonesia's commitment to ongoing investments. From 2022 to 2026, Toyota Indonesia plans to invest up to IDR 27.1 trillion in additional investments. The second-largest FDI in the automotive sector came from South Korea, amounting to USD 68.18 million during the first semester of 2023.
