RI projects 30% growth in car export

Car exports: An employee of PT Toyota Motor Manufacturing Indonesia (TMMIN) looks out over hundreds of Toyota Avanza and Fortuner cars that will be exported to the Middle East and countries in Asia, Africa and Latin America. – JP/Ricky Yudhistira

Indonesian car manufacturers project a 30 percent growth in export this year after experiencing a steep decline last year due to the global financial downturn.

Data from the Indonesian Automotive Industry Association says the country's completely built-up (CBU) automobile exports fell to 56,669 units in 2009 from 100,982 units in 2008.

Deputy chairman of the association Jongkie D. Sugiarto said the global economic recovery would play a great role in reviving the performance of the country's automobile industry this year.

“The political and economic condition of our destination countries is a key to reaching the growth target,” he told The Jakarta Post.

He added that the role of parent companies, including Toyota in Japan and Hyundai in South Korea, in mapping potentials export destinations would also contribute to the growth of Indonesian car exports.

Jongkie, also president director of Hyundai Mobil Indonesia, predicted that Southeast Asian countries would be emerging potential markets for automobiles manufactured in Indonesia thanks to the implementation of the Association of South East Asian Nations (ASEAN) free trade agreement (AFTA).

The AFTA officially lifts the 5 percent tax on automobiles and parts traded among the six founding ASEAN countries: Thailand, Malaysia, Singapore, Brunei, Philippines and Indonesia. (rdf)