Indonesia asks Toyota to consider building double-cab pickups for Australia, but no decision yet

A government request, not a company decision

Indonesia's Industry Minister Muhammad Sarmuji has asked Toyota Motor Manufacturing Indonesia (TMMIN) to increase vehicle exports from Indonesia by widening its model line-up and adding export destinations, and to consider producing double-cab pickup trucks domestically for the Australian market. The request was made during a meeting between the ministry and TMMIN executives in Jakarta on Tuesday, 27 October 2026, according to Antara and The Jakarta Post. ³²

Kompas.com reports the meeting took the form of a hearing by TMMIN at the Industry Ministry office in South Jakarta, and quotes Sarmuji as saying Toyota should expand exports "both by expanding its model lineup and the number of export destinations". Antara carries the same statement. ¹³

It is important to note that this is a government request, not a confirmed program. Warta Ekonomi states that as at the meeting Toyota had not announced any decision to produce double-cab vehicles in Indonesia, and no investment, production capacity or implementation schedule was disclosed. Viva reports similarly that the production idea has not become an official Toyota decision and was put forward for further study by the company. ⁷⁵

Antara reports Sarmuji praised TMMIN's economic contribution, noting that the subsidiary directly employs roughly 8,000 workers while supporting approximately 360,000 jobs across its supply chain and dealer network. ³

The minister's case: proximity and trade agreement

Sarmuji argued Australia is a promising export market because Indonesia is geographically closer to it than other supply countries and the two nations have an existing trade agreement that should support competitiveness. Kompas.com quotes him saying that Australia "is still largely supplied, taking its cars not from Indonesia but from our neighbouring countries, even though we are closer to Australia and we already have an agreement between Indonesia and Australia", adding that pricing and financing should therefore be able to be more competitive. ¹⁴

Antara records that Sarmuji also offered government support, saying the ministry could optimise the domestic automotive regulatory framework and, if needed, work to improve the double-cab vehicle ecosystem, including its component industry and supply chain. Kompas.com and Viva carry the same offer, with Sarmuji quoted as saying "If there is a need to improve the double-cab vehicle ecosystem, we can also do that". ³¹⁵

Katadata reports Sarmuji also framed the domestic market as headroom for growth, saying Indonesia's car ownership ratio stands at 99 units per 1,000 people, far below Malaysia at 490 and Thailand at 275, and that lifting the ratio would drive national automotive production growth. ⁶

Kompas.com notes the request faces a structural challenge: producers with large-scale production, established supply chains and export experience may hold cost advantages. It observes that Indonesia is known as a production base for family vehicles, particularly MPVs, while Thailand holds a strong position in pickup production for both domestic and export markets, so geographic proximity and a trade agreement are not necessarily sufficient to make Indonesia more competitive. ¹

Toyota's response: the ecosystem is in Thailand

TMMIN president director Nandi Julyanto responded that the double-cab production ecosystem currently exists in Thailand, which is a key consideration in choosing where export-market vehicles are built. Warta Ekonomi quotes him as saying "Double cabin, the ecosystem for that is now in Thailand. The Minister conveyed a request that this be produced in Indonesia". ⁷

On cost, Julyanto told Warta Ekonomi that because both Indonesia and Thailand are covered by free trade agreements, production costs are "not too different", and that the industrialisation impact is what needs to be weighed in deciding what policies government should issue. He asked the government to consider policies that would support developing the industry in Indonesia, saying that without such policy the company would need backing to proceed. ⁷

Warta Ekonomi reports that Julyanto also noted production allocation decisions require approval from Toyota headquarters. Separately, Antara records Julyanto saying the company remains committed to expanding export volumes, broadening its line-up and entering new export destinations, and that TMMIN has begun locally assembling the bZ4X electric vehicle with additional BEV models being prepared for the Indonesian market. ⁷³

Export scale and the BEV push

Katadata reports TMMIN accounted for 60.3 per cent of Indonesia's completely built-up (CBU) vehicle exports through the third quarter of 2026, exporting 223,696 units of a national total of 371,260, growth of 2.5 per cent year on year. Cumulatively since first exports in 1987 to September 2026, Toyota Indonesia has shipped 3,375,490 CBU vehicles to more than 100 countries, a list that already includes Australia and Oceania alongside Asia, the Americas, the Middle East and Africa. ⁶

Katadata also reports hybrid vehicle exports growing: combined shipments of the Kijang Innova Zenix HEV and Yaris Cross HEV reached 25,752 units in the first three quarters of 2026, up 64 per cent on the same period a year earlier. TMMIN plans to begin exporting assembled HEV battery packs in the second half of 2026 and to ship aftermarket components directly to the United States. ⁶

Beyond the pickup request, Sarmuji urged Toyota to accelerate its battery electric vehicle roadmap, praising the existing hybrid production and local hybrid battery plant that exports components internationally, according to Antara and Kompas.com. Katadata reports that, in the same remarks, Sarmuji said the government is committed to proposing incentives for hybrid vehicles, citing Indonesia's developing battery ecosystem. The Jakarta Post separately notes Toyota stressed at the meeting the need for stimulus to boost spending power and revive new-car sales, saying Indonesia's market had shifted toward used vehicles. ³⁴⁶²

What remains open

As at the 27 October meeting, the outcome is an open proposition on both sides. Warta Ekonomi states no announcement has been made on investment, production capacity or a schedule for double-cab production in Indonesia, and that the opportunity still depends on Toyota's business decision and supporting government policy. Viva notes no export target for Australia and no specific double-cab model was detailed at the meeting. ⁷⁵

For the Australian market, this means no confirmed model, supplier country change or timing can be reported. Any shift of double-cab supply toward Indonesia would require a Toyota headquarters allocation decision, and the minister's own framing acknowledges that most vehicles entering Australia currently come from neighbouring countries, as reported by Antara and The Jakarta Post. ⁷³²

The domestic demand side was addressed at the meeting: Antara's reporting carried by Warta Ekonomi notes TMMIN representatives said Indonesia's double-cab market has grown this year, driven mainly by mining and plantation sector needs, while stressing that domestic growth does not automatically mean local production for export will follow. ⁷