The Indonesian Car Rental Market is projected to grow at a CAGR of 7.28% over the forecast period, increasing from US$3.33 billion in 2025 to US$4.73 billion by 2030.
A car rental service, also known as a car-for-hire service is a type of service that offers cars, with or without drivers/chauffeurs to customers. The average time or contract period of this type of service may range from 1 day to a few months. In theCar rental market, various new contract types, like subscription models have been introduced, which offer customers the availability of a car for some fixed months.
The car rental services in Indonesia usually include a driver, making it convenient and stress-free to visit the diverse landscapes and bustling cities of the country. This service is highly in demand by tourists and business travelers as it avoids the hassle of driving on unfamiliar roads, dealing with local traffic, and communicating in the local language. The driver will usually know the routes of local roads, tourist destinations, and cultural habits, hence additional information or safety in this sense. The service is widely accessible in cities like Jakarta, Bali, and Surabaya. Its packages vary to meet travelers' demands, including short trips up to a full-day or even multi-day rental.
The nation's growing population is also estimated to boost the rental car market in Indonesia, as this service offers an efficient and cheaper option for cars, without having to own the car. The car rental services also allow consumers to travel longer distances at minimum cost. The nation's population has witnessed a constant rise and is among the most populated nations in the Asia-Pacific region. The World Bank, in its report, stated that in 2021, the total population of Indonesia was 273 million, which increased to about 275 million in 2022, finally reaching 277 million in 2023.
The number of international tourists has witnessed a major increase in the last few years. The BPS-Statistics Indonesia, previously known as the Central Bureau of Statistics of Indonesia, stated that the nation witnessed a significant increase in its international and domestic tourism. The agency further stated that in April 2023, about 865.81 thousand international visitors arrived in the nation, which increased to 953.71 thousand in May and 1.06 million in June 2023, respectively. In July 2023, the total number of international visitors arriving in the nation reached about 1.12 million, marking a significant increase in the tourism industry.
Jakarta is one of the largest cities in Indonesia, which has witnessed a positive urban development over the years. Further, the rising disposable income coupled with the strengthening of infrastructure facilities like internet connectivity provides a good business opportunity for online car rental service providers.
As per the estimates from BPS-Statistics Indonesia, in 2023 (quarter 3), Jakarta witnessed around 16.97 million tourists, followed by other provinces such as Sumatera Utara, DI Yogyakarta, Bali, and Nusa Tenggara Barat, among others. Therefore, this highlights lucrative prospects for the expansion of the car rental market in the country as travelers from other countries look for convenient and reliable means of transportation during their stays. Likewise, the same source suggested that the ROR (room occupancy rate) of classified hotels in Jakarta stood at 52.69%, which is much higher than several other cities in Indonesia overall.
Furthermore, the increasing business travel across the country supports the growth of on-demand mobility services. The flexible transportation option offered by car rentals meets most of the needs of people traveling for both business and leisure. Additionally, the presence of leading players in the city will lead to more innovations in car rental services. For instance, Avis provides a broad portfolio of car rental options in Jakarta under different car rental types, such as for airport-related needs.
A car rental service, also known as a car-for-hire service is a type of service that offers cars, with or without drivers/chauffeurs to customers. The average time or contract period of this type of service may range from 1 day to a few months. In theCar rental market, various new contract types, like subscription models have been introduced, which offer customers the availability of a car for some fixed months.
The car rental services in Indonesia usually include a driver, making it convenient and stress-free to visit the diverse landscapes and bustling cities of the country. This service is highly in demand by tourists and business travelers as it avoids the hassle of driving on unfamiliar roads, dealing with local traffic, and communicating in the local language. The driver will usually know the routes of local roads, tourist destinations, and cultural habits, hence additional information or safety in this sense. The service is widely accessible in cities like Jakarta, Bali, and Surabaya. Its packages vary to meet travelers' demands, including short trips up to a full-day or even multi-day rental.
The nation's growing population is also estimated to boost the rental car market in Indonesia, as this service offers an efficient and cheaper option for cars, without having to own the car. The car rental services also allow consumers to travel longer distances at minimum cost. The nation's population has witnessed a constant rise and is among the most populated nations in the Asia-Pacific region. The World Bank, in its report, stated that in 2021, the total population of Indonesia was 273 million, which increased to about 275 million in 2022, finally reaching 277 million in 2023.
Indonesia car rental market growth drivers
Increasing Tourism in the country
One of the major factors driving the Indonesian car rental market forward can be estimated to be the increasing tourism sector in the region. Indonesia is among the most visited international destinations in the Asian Pacific region. International tourists visiting the nation generally prefer to travel independently, increasing the demand for self-driven rental car market forward.The number of international tourists has witnessed a major increase in the last few years. The BPS-Statistics Indonesia, previously known as the Central Bureau of Statistics of Indonesia, stated that the nation witnessed a significant increase in its international and domestic tourism. The agency further stated that in April 2023, about 865.81 thousand international visitors arrived in the nation, which increased to 953.71 thousand in May and 1.06 million in June 2023, respectively. In July 2023, the total number of international visitors arriving in the nation reached about 1.12 million, marking a significant increase in the tourism industry.
Indonesia car rental market geographical outlook
By Cities, Jakarta is expected to hold substantial share in the market in the coming years.Jakarta is one of the largest cities in Indonesia, which has witnessed a positive urban development over the years. Further, the rising disposable income coupled with the strengthening of infrastructure facilities like internet connectivity provides a good business opportunity for online car rental service providers.
As per the estimates from BPS-Statistics Indonesia, in 2023 (quarter 3), Jakarta witnessed around 16.97 million tourists, followed by other provinces such as Sumatera Utara, DI Yogyakarta, Bali, and Nusa Tenggara Barat, among others. Therefore, this highlights lucrative prospects for the expansion of the car rental market in the country as travelers from other countries look for convenient and reliable means of transportation during their stays. Likewise, the same source suggested that the ROR (room occupancy rate) of classified hotels in Jakarta stood at 52.69%, which is much higher than several other cities in Indonesia overall.
Furthermore, the increasing business travel across the country supports the growth of on-demand mobility services. The flexible transportation option offered by car rentals meets most of the needs of people traveling for both business and leisure. Additionally, the presence of leading players in the city will lead to more innovations in car rental services. For instance, Avis provides a broad portfolio of car rental options in Jakarta under different car rental types, such as for airport-related needs.
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- Historical data & forecasts from 2022 to 2030
- Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
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The Indonesian Car Rental Market is segmented and analyzed as below:
By Car Type
- Electric
- Gasoline
- Economy
- Luxury
- XUV
- MUV
By Service
- Self-Driven
- Chauffeur Driven
By Application
- Leisure/ Activity Trips
- Corporate/ Business Trips
By Booking
- Online
- Offline
By Rental Category
- Local Transport
- Airport Transport
- Outstation Transport
- Others
By Contract Type
- Long-Term
- Short- Term
By Cities
- Jakarta
- Surabaya
- Bali
- Yogyakarta
- Others
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. INDONESIA CAR RENTAL MARKET BY CAR TYPE
6. INDONESIA CAR RENTAL MARKET BY SERVICE
7. INDONESIA CAR RENTAL MARKET BY APPLICATION
8. INDONESIA CAR RENTAL MARKET BY BOOKING
9. INDONESIA CAR RENTAL MARKET BY RENTAL CATEGORY
10. INDONESIA CAR RENTAL MARKET BY CONTRACT TYPE
11. INDONESIA CAR RENTAL MARKET BY CITIES
12. COMPETITIVE ENVIRONMENT AND ANALYSIS
13. COMPANY PROFILES
Companies Mentioned
- The Hertz Corporation
- Bluebird Group
- Pt Serasi Autoraya (Sera)
- Mitra Pinasthika Mustika Rent
- Adi Sarana Armada Tbk
- Avis Budget Group
- Europcar Mobility Group
- Globe Rent A Car
- TRAC (Astra)
- Rent Car Indonesia
- WAHDAH
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 100 |
| Published | December 2024 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value ( USD | $ 3.33 Billion |
| Forecasted Market Value ( USD | $ 4.73 Billion |
| Compound Annual Growth Rate | 7.2% |
| Regions Covered | Indonesia |
| No. of Companies Mentioned | 11 |
