JAKARTA (TheInsiderStories) - The four wheels sales in Indonesia rose 6.4 percent to 96 294 units in August, up 6 percent from the same period last year, at 90,537 units, according to data released by industry association Gaikindo. On a monthly basis, sales were up almost 54 percent at 96,294 units.
Gaikindo reported the total sales during January to August reached 691,042 units, slight increase by 2.9 percent over the same period last year of about 671,643 units.
Industry players said some factors that drive the achievement were among others due to seasonal trends after Lebaran, the presence of new models, which offset a decline of people’s purchasing power. Moreover, in the second half of this year, the central government has boosted its spending. The result started to affect the automotive market.
Minister of Industry Airlangga Hartanto expects car export volume in 2017 to rise by 10 percent from this year’s target of 200,000 units. This potential is driven by government policies creating a conducive investment climate and principals increasingly aggressive in global car production.
He added, together with the automotive industry government aims to make Indonesia as a production base of industrial vehicles and their components in ASEAN and the world.
In an effort to boost export markets, his ministry continues to coordinate with the Ministry of Energy and Mineral Resources and stated-owned energy producer PT Pertamina to improve emissions standards from Euro2 to Euro4.
Other solutions to increase exports, Airlangga added, the principals need to multiply the production of vehicles that demand global market today such as certain types of sedan and SUV. Ministers urged the national automotive industry to further deepen the industrial structure through capacity building components industry.
“The potential of the domestic market continues to grow an incentive for businesses to increasingly develop products that foster components industry to deepen the structure of the national automotive industry,” he said.
He assured will actively boost the competitiveness of the national automotive industry through capacity building of human resources and industrial management as well as increased mastery of technology and research & development (R&D) automotive industry. (*)