Indonesia Car Rental Market - Strategic Insights and Forecasts (2026-2031)

The Indonesia Car Rental Market market is forecast to grow at a CAGR of 7.6%, reaching USD 5.15 billion in 2031 from USD 3.57 billion in 2026.

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 the Car 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 market in Indonesia is thriving, driven by the demand for convenient and flexible transportation solutions. A key feature of car rental services in Indonesia is the inclusion of a driver, which enhances convenience for tourists and business travelers navigating diverse landscapes and bustling cities like Jakarta, Bali, and Surabaya. This service eliminates the challenges of driving on unfamiliar roads, managing local traffic, and overcoming language barriers. Drivers, often knowledgeable about local routes, tourist attractions, and cultural norms, provide added value by ensuring safety and offering insights. Rental packages are tailored to diverse needs, ranging from short trips to full-day or multi-day rentals, catering to both leisure and business travelers.

Indonesia’s growing population, estimated at 277 million in 2023 by the World Bank, up from 275 million in 2022 and 273 million in 2021, fuels market growth. This population surge, combined with increasing urbanization, drives demand for cost-effective alternatives to car ownership. Car rentals offer an affordable and efficient option for long-distance travel, appealing to a broad consumer base. The rise of digital platforms has further transformed the market, with online booking systems and mobile apps simplifying access to rental services, particularly in urban centers and tourist hubs.

Technological advancements, such as GPS integration and real-time booking, enhance user experience, while eco-friendly options like fuel-efficient vehicles align with growing environmental awareness. The market benefits from Indonesia’s status as a top tourism destination in the Asia-Pacific, with Bali and Jakarta attracting millions annually. User search intent for car rental services in Indonesia typically focuses on finding reliable, driver-included rentals, cost comparisons, and flexible packages for tourism or business travel. Consumers seek information on booking platforms, vehicle options, and safety features to plan seamless trips. 

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 the self-driven rental car market.

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 1,062.79 thousand in June 2023, respectively. In July 2023, the total number of international visitors arriving in the nation reached about 1,121.19 thousand, marking a significant increase in the tourism industry.

Indonesia Car Rental Market Segment Analysis:

• The self-driven segment is anticipated to hold a significant share in the market in the projected period.

Even though Indonesia is known for being the second-largest manufacturer of automobiles in Southeast Asia, it still has a smaller number of people with vehicle ownership. This is apparently due to the high cost of car ownership, which incorporates parking costs as well as vehicle maintenance costs, leading to people shifting their preference to self-driven car rentals. According to the Indonesian Ministry of Industry data, car ownership in the country was very low, with approximately 99 in every 1000 individuals owning a car. Thus, it allows more people in the country to opt for self-driven car rentals for commuting, traveling, and exploration purposes.

Moreover, tourism is an expanding sector in Indonesia and is a key contributor to the growth of the country's economy. This blooming tourism sector, due to both domestic and international tourists attracted to popular locations such as Bali and Jakarta, will also positively surge the demand for self-driven car rentals. According to the report of July 2024 from the Bali Central Bureau of Statistics, Bali reported 2,391,860 foreign tourists in the first five months of 2024, which was an increase of 27.46% from 2023, while it also witnessed 4,091,049 domestic tourists from January to May of 2024.

Moreover, the largest international tourist market share as of May 2024 was from Australia, which was 23.74%, while India and Singapore notably showed a growth rate of 50.23% and 51.19 %, respectively, in May 2024. In addition, many tourists prefer to explore the country independently, and the availability of navigation apps like Google Maps and Waze is making it easier for tourists to travel on their own, leading to a rise in the self-driven car rental segment in the coming years. 

Indonesia Car Rental Market Geographical Outlook:

• By Cities, Jakarta is expected to hold a substantial share in the market in the coming years.

Jakarta is one of the largest cities in Indonesia, which has witnessed 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^[1], in 2023 (quarter 3), Jakarta witnessed around 16,979.70 thousand tourists, followed by other provinces such as Sumatra 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 in 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. 

List of Top Indonesia Car Rental Companies:

• The Hertz Corporation

• Bluebird Group

• Pt Serasi Autoraya (Sera)

• Mitra Pinasthika Mustika Rent

• Adi Sarana Armada Tbk

Indonesia Car Rental Market Developments:

• November 2025: Indonesian state-backed company Agrinas Pangan Nusantara announced procurement of 320,000 vehicles under a cooperative program, boosting fleet availability and indirectly supporting large-scale rental and leasing ecosystem expansion.

• March 2025: VinFast announced plans to deploy up to 100,000 EV charging stations across Indonesia, supporting electric vehicle adoption and enabling future integration of EV fleets in car rental and mobility services.

• January 2025: BYD confirmed construction progress of its $1 billion EV manufacturing plant in Indonesia, expected to support vehicle supply growth and accelerate electrification trends influencing rental fleet modernization.

• 2025: PT Serasi Autoraya (Astra Group) continued expansion of its TRAC car rental services, focusing on corporate leasing, digital platforms, and fleet diversification to meet growing demand from business and tourism sectors.

• 2025 (Throughout Year): Bluebird Group expanded its digital mobility and rental services, integrating app-based booking, fleet optimization, and corporate leasing solutions to strengthen Indonesia’s organized car rental ecosystem.

Indonesia Car Rental Market Scope:

Indonesia Car Rental Market Segmentation:

BY CAR TYPE

• Electric

• Gasoline

• Economy

• Luxury

• SUV

• 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

• Bali

• Yogyakarta

• Others