SBT Car News

Indonesia – The Next Potential Auto Hub


Due to its tremendously growing automobile market, all bets are on Indonesia being the next upcoming auto industry hub of the century. This comes as positive news not only for the local auto industry but for developing countries as well.

According to Association of Indonesian Automotive Manufacturers, the car sales for the first quarter of 2014 has expanded to 328,254 units, a 10.93 percent year-on-year increase, inspite of the high interest rates and peaking production costs. With the impressive boost experience, the sales might surpass the annual target of around 1.2 million units, the figure recorded last year. According to the Economic Research Institute for ASEAN and East Asia senior policy coordinator Yoshifumi Fukunaga, the rapidly growing domestic market has created numerous opportunities for Indonesia to become an automotive production base in South East Asia, Middle East and Africa. Presently Indonesia is served by a mere 800 auto suppliers the increment of which will give another boost to the rapidly expanding market. Indonesia with its expanding business has been present in exporting sedans, sports utility and multi purpose vehicles, and other automobiles in more than 70 countries. Car exports are now predicted to take a spike of 10% from $4.45 billion last year to markets including Thailand, Saudi Arabia, Japan and Malaysia.