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Indonesian car sales dropped by 48.35 percent during 2020 depressed by the COVID-19 pandemic - Photo: Special

JAKARTA (TheInsiderStories) – Indonesian car sales dropped 17.63 percent from 90.338 units in March 2019 to 76,800 units in March 2020 caused the low demand, the association reported today (04/15). In the previous month, total automotive sales recorded 79,601 units.

The major producer, PT Astra International Tbk (IDX: ASII) still hold 60 percent market shares compared to other competitor such as Mitsubishi, Honda, Suzuki, Nissan and others. In the first quarter of this year, the manufacturer has sold 292,800 unit cars.

Earlier, co-chairman of the car manufacturer association (GAIKINDO), Jongkie D. Sugiarto has revised down the automotive sales from initially 1.03 million units to 600,000 units due to COVID-19 impact.

This endless outbreak caused several car manufacturers to temporarily halt the production caused the low supply of raw materials for the next few months. Some car producers such as Wuling, Honda and Suzuki have announced that the factory has stopped temporarily due to the virus spread.

Wuling factory in Bekasi, West Java has a production capacity of up to 120,000 units per year. Then, PT Honda Prospect Motor’ plant in Karawang, West Java, have a annually capacity production of 200,000 units has stop operating for 14 days.

The drop in production will also be experienced by PT Astra Daihatsu Motor. According to the marketing director, Amelia Tjandra, the manufacturing production activities are carried out one shift with working hours lower than usual. She estimates that the realization of Daihatsu’ production could decrease by more than 40 percent compared to the normal conditions produce up to 530,000 cars a year.

While, Ernando Demily, president director of PT Isuzu Astra Motor Indonesia with new sales forecast changes. However, He optimistic that there is still an opportunity to grow the commercial market segments amid the pandemic.

To support the automotive industry, recently industry minister, Agus Gumiwang Kartasasmita said, his office has proposed economic stimulus to press the COVID-19 impact in Indonesia. This policy was made to maintain the performance of the industry’ contribution to the national economy.

“Although there are automotive manufacturers whose production has been disrupted due to COVID-19, we ensure the availability of products and parts for motor vehicles,” said director at the ministry of industry, Putu Juli Ardika in Jakarta, in an official statement today (04/08).

According to him, his office has proposed fiscal, non-fiscal, and monetary stimulus to the related ministry and agencies on the new policies. In detail, the fiscal stimulus is in the form of incentives income tax for six months, value added tax refunds also for six months, and a reduction in import duties.

“Non-fiscal stimulus is given in the scheme of simplifying or reducing export and import for raw materials, accelerating the export-import process for reputable traders, and simplifying the import-export process through NLE (National Logistic Ecosystem),” he explained.

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