Economy & Industry

Government Encouraging Production of Sedan in Indonesia



JAKARTA— The Ministry of Industry is encouraging Indonesia car industry to improve sedan production. The effort is meant to boost car export, said The Director General for Metal, Machinery, Transportation Equipment and Electronic Industry of the Ministry of Industry of the Republic of Indonesia, Mr I Gusti Putu Suryawirawan.

“We need sedan production to increase in Indonesia since export demands are mostly sedan,” said Mr I Gusti Putu Suryawirawan prior to a meeting in his office in Jakarta.

Most car manufacturers in Indonesia nowadays produce multi purpose vehicle (MPV) models. This is because MPV is the most favourite model among Indonesian customers.

He explained that the Government is preparing a specific regulation on car industry, where the step to encourage production of sedan in Indonesia is included. The regulation is likely to be completed by March or April 2016.

“We are facilitating the industry to boost the production of small sedan which has specific measures in terms of taxation on luxury goods, to improve export,” he added.

Once the regulation begins in effect, he hopes that car export from Indonesia will pick up by 10 or 15 percent by the end of 2016. He predicts that automotive industry is likely to experience a stagnant market in the first semester of 2016.

He hopes market and production will grow during the next semester to reach 1.1 to 1.2 million units all year through. “Car sales of 1.1 million units are fair enough. And 1.2 million units are better off,” he said. (*)