Indonesia aims for 15 percent growth of car exports. Industry Minister Airlangga Hartarto has said the government aims for a 15 percent growth of car exports in 2019, from 346,000 in the previous year to 400,000. The minister said he sees high demand for Indonesian cars from ASEAN countries.
“The ASEAN market has big potential. The most Indonesian car exports were to the Philippines, Vietnam and also Thailand, which has started to open its market,” said Airlangga in a statement as quoted by setkab.go.id on Thursday.
The minister said Australia would also become another potential market for Indonesian automobiles, particularly after the recent signing of the Indonesia- Australia Comprehensive Economic Partnership Agreement (IA-CAPA).
The government was now waiting for ratification of the agreement by the Australian parliament and Indonesia’s House of Representatives, he said.
“After the agreement is ratified, export potential [to Australia] would be greater, including for electric vehicles. Australia will give us high priority,” he said, adding that the automotive industry was one of the best structured manufacturing sectors in Indonesia.
Airlangga explained that Indonesia had already had the raw materials to manufacture cars: steel, plastics, rubber, tires and glass. He said Indonesia had also been able to develop car engines with 80 percent local content.
“Therefore, we see our automobiles as competitive for export,” he said, adding that last year Indonesian carmakers in Indonesia produced 1.34 million units worth US$13.76 billion. Indonesia aims for 15 percent growth of car exports (bbn, The Jakarta Post)