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Indonesia eyes 20 percent increase in car exports amid decline in local sales
The Industry Ministry hopes to ship 600,000 units from Indonesia this year, 100,000 units more than last year.
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Made in Indonesia: Cars bound for export sit parked on Dec. 15, 2023, at a facility belonging to PT Indonesia Kendaraan Terminal in Tanjung Priok, Jakarta. Indonesian car exports were up 10.6 percent in the January to November period from the same period last year. (Antara/Andika Wahyu)
The government is targeting a 20 percent increase in automobile exports this year amid declining domestic car sales.
Industry Minister Agus Gumiwang Kartasasmita said he hoped Indonesia could ship 600,000 units this year, 100,000 units more than last year.
The target is supported by a positive automotive industry climate and is backed by 21 car manufacturers with a production capacity of 2.35 million units per year. Agus said one producer has promised to expand its export market.
“Mitsubishi has promised us to immediately export to Australia,” said Agus during a visit to the Indonesia International Motor Show 2024 in Kemayoran, Jakarta, as quoted in Antara.
Read also: Indonesian car industry sees sales fall 4% in 2023
Domestic car wholesales recorded a 4 percent year-on-year (yoy) decline in full-year sales for 2023, reaching 1 million units last year, down from 1.05 million units sold in 2022, according to data from the Association of Indonesian Automotive Industries (Gaikindo).
Agus blamed the decline in the domestic market due to a slowdown in bank credit and a decrease in people’s purchasing power, while producers have cited the impact of weaker economic growth last year and high interest rates.
