Australia, New Destination for Car Export from Indonesia

ekspor-toyota-fortunerJAKARTA— The Indonesia-Australia bilateral cooperation of Comprehensive Economic Partnership Agreement (IA-CEPA) opens an opportunity for the car industry in Indonesia to increase exports. So far car manufacturers in Indonesia have been exporting their products to various parts of the world, except Australia. With IA-CEPA agreement, exports of cars can be widened to Australia.

The Government of Indonesia through the Ministry of Industry has seen the chance. The Ministry encourages the opportunity should be taken by the automotive industry in Indonesia. To realise auto exports to Australia, some stakeholders in the Indonesian automotive industry need to make preparations.

“There is a potential for major exports to Australia. The Ministry together with GAIKINDO need to study, “said Director General of Metal, Machinery, Transportation, and Electronic Equipment of Ministry of Industry Mr I Gusti Putu Suryawirawan.

Bisnis Indonesia Daily quoted that car sales in Australia at the beginning of this year rose compared to the beginning of last year. The Australian Federal Chamber of Automotive Industries’ VFACTS reported, new cars sold in January 2017 amounted to 84 910 units, up 0.6 percent compared to January 2016.

During that period market of sport utility vehicle (SUV) grew 7.7 percent over the same period last year. While all the SUVs grew 3.3 percent in 2016.

In Indonesia, the car manufacturers prefer to create models of cars that can accommodate many people, multi purpose vehicle (MPV). The only industry that produces SUV in Indonesia is Toyota (Fortuner) which has been widely exported to the Middle East and Gulf countries.

An official statement from the Interior Ministry said that the cooperation of IA-CEPA negotiations enter the sixth round. Both countries are targeting the bilateral agreement could be completed in 2017. (*)