Accelerating Economic Growth: Financial Group Backs East Java’s Automotive Industry at IIMS Surabaya 2025

Surabaya, 23 May 2025 – The Indonesian automotive industry remains one of the key pillars of national economic growth. With its ability to generate extensive employment opportunities, the continued high demand for motorized vehicles, and significant room for growth in vehicle usage per capita, the industry continues to play a vital role in both society and the broader national economy.

Despite various global macroeconomic uncertainties affecting the automotive industry, the sector continues to be one of Indonesia’s key industries, contributing over 7% to the manufacturing component of the nation’s gross domestic product (GDP). The Indonesian Government has reported that investment realization in the automotive sector from 2020 to 2024 exceeded Rp150 trillion. In 2024 alone, more than 860,000 cars (wholesale) and over six million motorbikes were sold across the country, underscoring the sustained high national demand for motor vehicles.

To better understand the significant role of Indonesia’s automotive sector, East Java province serves as a noteworthy example, where both the production and consumption of motor vehicles continue to grow. Based on data from the Indonesian National Police Traffic Corps (Korlantas Polri), the number of motor vehicles in East Java reached 26.1 million units as of April 2025—accounting for 15.5% of the total motor vehicles nationwide. This makes East Java the province with the largest motor vehicle population in Indonesia.

On the business front, data from Statistics Indonesia (BPS) shows that exports of motor vehicles and accessories from Tanjung Perak Port in Surabaya to various countries reached US$441.8 million (approximately Rp7.4 trillion) in 2024. Several cities and regencies in East Java—such as Pasuruan, Sidoarjo, and Gresik—also serve as key production hubs within Indonesia’s automotive industry supply chain. According to the East Java branch of the BPS, as of 2022, the province was home to 83 large and medium-scale manufacturing companies engaged in the production of motor vehicles, trailers, and semi-trailers, as well as 45 large and medium-scale companies focused on the repair and installation of machinery and equipment. In the micro and small-scale manufacturing sector, 2023 data recorded 249 companies operating in the motor vehicles, trailers, and semi-trailers segment, and 3,374 companies engaged in repair and installation of machinery and equipment across East Java.

With the vast potential of East Java’s automotive industry—both in terms of industry players and consumer demand—MUFG Bank, Ltd. (“MUFG”), PT Bank Danamon Indonesia Tbk (“Danamon”), and PT Adira Dinamika Multi Finance Tbk (“Adira Finance”) are committed to supporting the sector in one of Indonesia’s largest provinces. MUFG, whose existence in Indonesia can be traced back to its predecessor’s branch established in 1918 in Surabaya, has established strong relationships with automotive industry players in the region and offers tailored corporate banking solutions, including corporate credit, treasury services, and trade finance.

Danamon, as one of the largest national private commercial banks in Indonesia, serves customers across East Java through its Surabaya Regional Office, covering 16 cities/regencies with 34 branch offices. Danamon provides a comprehensive range of financial solutions for various customer segments—from corporations and small and medium enterprises to individual retail customers—such as loan and savings products, transaction banking, investment services, and bancassurance.

Adira Finance enhances this ecosystem with the presence of 50 branch offices (both conventional and sharia), offering innovative financing solutions, particularly in the automotive sector, to help the people of East Java achieve vehicle ownership and easier access to funds.

Danamon and Adira Finance’s flagship automotive financing product, KPM Prima, has been well received by consumers in East Java. In 2024, the total value of KPM Prima financing in the region grew by 211% compared to the previous year, while the number of customers utilizing the product increased by 206% over the same period. These figures reflect the strong customer trust in the financial solutions provided by Danamon and Adira Finance, as well as their ability to effectively meet consumer needs in acquiring motor vehicles.

Continuing their joint commitment as One Financial Group to support the automotive industry in East Java, Danamon and Adira Finance—supported by MUFG—will once again take part in the Indonesia International Motor Show (“IIMS”) Surabaya 2025, held from 28 May to 1 June 2025. Now in its fourth consecutive year of participation, this collaboration underscores their dedication to one of Indonesia’s most prestigious automotive exhibitions. Danamon, as the Official Bank Partner, and Adira Finance, as the Official Multifinance Partner—together with Momobil and Momotor as the Official Trade-In Partners—will offer a wide range of premier financial solutions to help prospective consumers purchase the motor vehicles they need.

Michael Sugirin, Managing Director and Head of Global Corporate and Investment Banking for MUFG Indonesia, stated, “It is an honor for MUFG to once again support IIMS, the largest automotive event in Indonesia, held in the city of Surabaya. Through our Surabaya Sub-Branch, MUFG remains committed to being present in one of the country’s key economic centers, offering tailored financial solutions that meet the needs of our customers in the East Java region.”

Irene Sri Redjeki, Regional Corporate Officer for East Java of Danamon, explained, “Reaffirming Danamon’s commitment to being the banking and multifinance partner of choice for Indonesia’s automotive industry—both nationally and in East Java—we are proud to continue our support for IIMS, the country’s largest automotive exhibition, by participating in Surabaya for the fourth time. Danamon offers a range of financial solutions for both individual and business customers to help them acquire their dream vehicles.”

Irfan Budianto, Head of Regional SSD for East Java of Adira Finance, added, “In line with Adira Finance's mission to provide a variety of financial solutions tailored to customer needs through synergy with the ecosystem, we continue to strengthen collaboration with Danamon and MUFG. Our participation in IIMS Surabaya is part of an active effort to support the growth of East Java's automotive industry, which continues to develop. Through integrated and easily accessible financial solutions, we are committed to expanding public access to financing and driving sustainable regional economic growth."

The participation of Danamon, Adira Finance, and MUFG in IIMS Surabaya 2025 for the fourth consecutive year reflects their shared commitment—as One Financial Group—to supporting the advancement of Indonesia’s automotive industry. Their strong presence in Surabaya and across East Java underscores the strategic importance of the region to their business operations, as well as its significant contribution to the growth of the Indonesian economy as a whole.

For more information about the programs and promotions at IIMS Surabaya 2025, please visit bdi.co.id/iimssby2025.

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