The Ministry of Industry is projecting exports of 120,000 cars this year, or an increase of 10 percent from last year, according to an official.
“The demand for cars in countries in Africa and the Middle East continues to rise,” said Budi Darmadi, the Ministry of Industry’s director general for priority technology-based industries.
He said the government will continue to encourage cars companies to increase their exports to meet the ballooning demand. Budi said Japanese cars produced in Indonesia were favourites in Africa and the Middle East because maintenance was fairly cheap.
He also said that in the first half of the year, exports of Completely Built Units – or cars that don’t require any further assembly – had already reached 57,000 units.
“The demand will rise further in line with the improving economies in several African countries. Besides, the potential of the Middle east as a market for our car exports is also great,” he said.
Indonesian demand for automobiles continued to rise, despite earlier predictions of slower growth due to a government regulation setting higher advanced payments for car purchases. But Budi said the new regulation won’t take effect for a few months, and doesn’t believe the impact will be significant.
Furthermore, Budi used Daihatsu as an example of the heightened demand; the company is already exporting 14 percent of its total production, but at the same, is having difficulty meeting domestic demand.
The Indonesian motorised vehicle producers’ assocaition (Gaikindo) has also forecast exports of CBU and Completely Knocked Down cars – or automobiles that are imported or exported in parts and not as one assembled unit – to grow by 10 percent the year.
Gaikindo expected this year’s CBU exports at 118,735 units compared to last year’s 107,932, while CKD exports were seen at 92,080 units from last year’s 83,709.