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2 million cars

Akhyari Hananto
Akhyari Hananto
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2 million cars
Annual car production in Indonesia, Southeast Asia’s second-biggest automobile market, is forecast to reach two million units in 2018 on increasing demand and rising household income, according to industry representatives. “There is talk about producing two million cars in 2018, but I would not predict that because I am more realistic,” Sudirman M. Rusdi, chairman of the Indonesian Automotive Industries Association (Gaikindo), said on the sidelines of the Indonesia International Motor Show on Sunday. “But if the automotive sector improves more than expected, the goal of producing two million units might be realized even sooner.’’ Domestic carmakers were expected to produce a million cars a year by 2013 and 1.5 million by 2015, he said. Car production totaled 650,000 units last year, while 384,000 were made in the first half of 2011, according to Gaikindo. Last year, Indonesia was the second-largest automotive market in Southeast Asia after Thailand, but the coordinating minister for the economy, Hatta Rajasa, says it may soon overtake its neighbor as the region’s automotive hub. “The government will support Gaikindo to beat Thailand as the largest production base in Southeast Asia,” he said on Friday. Indonesia’s current per capita income has reached $3,500. A survey conducted by Nielsen last year estimated the country’s middle-class market would double to 60 million in the next five years, while the government unveiled an economic master plan in May aimed at helping boost incomes for many more. Indonesian consumers typically pay a 20 percent down payment when purchasing cars and use bank loans to finance the remainder. The central bank’s key interest rate, at 6.75 percent, provides room for lenders to provide a relatively affordable rate. The 19th Indonesia International Motor Show attracted about 31,461 visitors on its opening day on Friday, which is well on track for breaking last year’s record total of 282,331. The exhibition, which is held at the Jakarta International Expo in Kemayoran, will end next Sunday, with total visitor numbers forecast at 300,000. (The Jakarta Globe)

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TENTANG AKHYARI HANANTO

I began my career in the banking industry in 1997, and stayed approx 6 years in it. This industry boost his knowledge about the economic condition in Indonesia, both macro and micro, and how to unders ... Lihat Profil Lengkap

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