Indonesian Automotive News
- Indonesia has a fascinating development in automotive industry because Indonesia is predicted to be the ASEAN’s largest automotive production and market in 2019 with total vehicle production to reach 2.3 million. This development triggered by Indonesia’s economic growth which is stable and the automotive sector increased investment as well as the enactment of the regulation that support the growth of the automotive market.
- The domestic automotive products have been exported to more than 80 destinations in the world until now. Indonesian production levels are expected to exceed Thailand in 2025.
- In line with the liberalization of world trade in increasing, will be enacted ASEAN Economic Community (AEC) by the end of 2015. With an area of 4,47 million square km and a population of 601 million people, AEC is an opportunity for the domestic industry to develop export markets and attract investors to Indonesia, which will encourage the transfer of the technology and product innovation. AEC also allow joint venture with companies in ASEAN to facilitate access to raw materials can not be produced domestically.
- Indonesia advantages compared to other ASEAN countries based on the size of the domestic market potential. With a population of around 250 million people. Indonesia is superior in terms of domestic sales compared to Thailand with a population of 66 million people.
- Entering 2015, the expansion of investment in Indonesia continue to increase, including the automotive sector. The value of investments in automotive industry in this year will grow around 10 – 12% or more that USD 4.3 billion. It is estimated, will increase investment flows to sub-sector component. As the principal agenda of improving local content and produce new variant.
- S&P Global Ratings raised Indonesia’s rating to “investment grade”, bringing Indonesia as a stable country with decent of investment. It boosts growth and demand from all rising industrial sectors as well as automotive industry.