Indonesia's finance minister publicly asked Toyota to move its main production from Thailand to Indonesia on 4 Aug 2026, offering incentives and saying supporting industries (steel, electronics, chemicals) should follow. The same week Thailand's PM visited Indonesia, which signed four MOUs (including tourism and a carbon-market deal). Indonesia also says it will announce incentives for about 500,000 battery EVs within two to three weeks, with luxury-tax exemption up to 100% and a 40% VAT cut for BEVs only, not hybrids or PHEVs. For Thai auto-parts and supplier SMEs, the risk is gradual order shifts from Thailand to Indonesia; watch the incentive announcement and your Toyota-linked customer volumes.