Executive Summary

Key insights and market outlook

The recent political turmoil in Venezuela following the arrest of President Nicolas Maduro by the United States has raised concerns about Indonesia's car exports to the country. Venezuela is a significant export destination for Indonesian vehicles, particularly for Toyota ¹

³. The Indonesian government and automotive industry are closely monitoring the situation, with negotiations for an Indonesia-US trade agreement proceeding as scheduled despite the conflict ².

Full Analysis

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Deep Dive Analysis

Indonesia's Automotive Exports to Venezuela Under Uncertainty

Political Turmoil in Venezuela

The recent arrest of Venezuelan President Nicolas Maduro by the United States has created significant political turmoil in Venezuela, raising concerns about the continuity of Indonesian car exports to the country ¹

. Venezuela has been an important export destination for Indonesian automotive manufacturers, particularly Toyota ³.

Industry Response and Monitoring

PT Toyota Motor Manufacturing Indonesia (TMMIN) Vice President Director Bob Azam stated that the company is closely monitoring the developing situation in Venezuela. As of now, TMMIN has not received any information about export disruptions ¹

. According to data from the Indonesian Motor Vehicle Industry Association (Gaikindo), Toyota shipped nearly 6,000 completely built-up (CBU) vehicles to Venezuela between January and November 2025 ³.

Government Assurance on Trade Negotiations

Despite the conflict between the US and Venezuela, Indonesia's trade negotiations with the US are proceeding as scheduled. State Secretary Prasetyo Hadi confirmed that the negotiations for the Indonesia-US trade agreement will continue between January 12-19, 2026 ²

. The agreement aims to follow up on the previous joint statement that announced a reduction in reciprocal tariffs for Indonesia from 32% to 19% ².

Market Implications

The political situation in Venezuela poses potential risks to Indonesian automotive exports. However, the Indonesian government's proactive approach to trade negotiations with major partners like the US demonstrates efforts to diversify and strengthen trade relationships amidst geopolitical uncertainties.

References