The Indonesian automotive industry’s journey to produce a
true national car has been marked by ambitious policies, political maneuvering,
and economic challenges. From the early days of Toyota Kijang to the Timor
sedan and now the latest Maung Garuda, each chapter has brought Indonesia
closer to self-reliance in the automotive sector.
In the mid-1990s, whispers of a Presidential Instruction
(Inpres) on the national automotive industry sparked curiosity. Tunki
Ariwibowo, Minister of Industry and Trade from 1993 to 1998, faced the press
about the government’s intentions with little to offer, saying, “Just be
patient; once everything is clear, I’ll explain it to everyone” (Kompas,
February 27, 1996). Not long after, Inpres No. 2/1996 designated PT Timor Putra
Nasional (TPN), owned by President Soeharto’s son Hutomo Mandala Putra, as the
national automotive industry’s “pioneer,” granting it substantial tax and
import duty exemptions.
The decision fueled controversy, with industry players and
trade groups questioning the fairness of the policy. Japanese and Western
governments expressed concern, with Japan even considering a WTO complaint.
Nonetheless, TPN launched its first car, the Timor, in July 1996, a sedan
produced in collaboration with South Korea’s KIA Motors.
Indonesia’s quest for a locally-produced vehicle dates back
to the 1970s. In 1974, President Soeharto issued a decree restricting the
import of fully assembled vehicles and allowing only authorized agents to
import knock-down kits. This aimed to strengthen the local automotive sector.
Toyota, already investing in the region, launched the iconic Kijang at the
Jakarta Fair in 1977, which became a lasting success and a symbol of
Indonesia’s industrial ambitions.
Other early attempts at domestic production—such as the
Morina, VW Mitra, and Holden Lincah—faced obstacles due to inconsistent demand,
limited technology, and insufficient economies of scale. The financial crisis
of 1998 proved a significant setback, affecting both the Timor and Bimantara
projects and leaving the industry fragmented.
In 2009, a new hope arose with the introduction of Esemka, a
vehicle developed by vocational school students. Although it briefly captured
public attention and seemed to symbolize a revival of Indonesia’s automotive
aspirations, mass production never materialized.
In recent years, Indonesia’s government renewed its
commitment to domestic automotive development with the Maung Garuda. Produced
by PT Pindad, this vehicle has been named the official service vehicle for
state officials in the Merah Putih Cabinet, signifying government backing for
the project. Minister Prasetyo Hadi emphasized that the procurement of these
vehicles would proceed in line with PT Pindad’s production capacity. This
approach not only reflects public policy’s legitimacy theory—emphasizing local
product support—but also considers social and environmental factors in
development.
Maung Garuda faces substantial challenges. Competing
globally demands innovation, adherence to international standards, and an
ability to captivate consumers with unique features. Through strategic
partnerships, fiscal incentives, and infrastructure improvements, the
Indonesian government hopes to stimulate national enthusiasm for
locally-produced vehicles.
Countries like South Korea and Malaysia have set valuable
precedents. By learning from their successes and failures, Indonesia can build
a sustainable automotive industry capable of standing alongside global
competitors. The Maung Garuda, if successful, could mark a historic turning
point, solidifying Indonesia’s place in the international automotive arena and
transforming the dream of a national car into reality.
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