Indonesia's automotive industry development potential | Finance ...

Recent times, although due to the debt crisis broke out in Europe and America, the instability of world economic recovery, increased uncertainty, but Indonesia?s automotive industry has maintained a strong momentum of development. The latest statistics show that so far this year, with Indonesia?s domestic commercial vehicle sales increased 86% compared to the same period. According to the Indonesian Automotive Industry Association predicted that total vehicle sales this year will reach 830,000 in 2012 to 950,000 in 2013 will exceed 100 million units. Analysts here pointed out that with measures related to timely follow-up, the great potential of Indonesia?s automotive industry will be more fully tapped, and the automotive industry will be more orderly and rapid development.

Foreign investment and joint ventures in Indonesia are currently 13 automotive companies, 380 auto parts companies, vehicle production capacity of 750,000. Japanese, U.S. and European car firms have been more in Southeast Asia to Indonesia as the main production base. Recently, General Motors and Peugeot decided to restore Indonesia as its base in Southeast Asia and the positioning of major automotive assembly and increase the investment; Nissan, Suzuki, Chrysler, Daihatsu, and BMW, also in Indonesia, respectively, announced their expansion plans to increase their investment or , amounted to $ 250 million, $ 800 million, $ 100 million, $ 246 million and $ 12 million. Recently, Indonesia?s rapid economic development, low-cost labor, huge domestic market, a huge export potential of radiation and the government continued preferential policies, making the emerging economies auto companies have also poured into Indonesia?s automobile production and sales market. India?s Tata Group has expressed interest in building production bases in Indonesia.

At the same time, Indonesia?s automotive industry is also facing some problems to be solved. First, the urgent need for Indonesia?s national auto industry development and growth. More, the automotive industry in Indonesia is actually a car assembly and parts industry, so far not yet a true sense of the domestic brand car. The result is the slow development of the national auto industry, a huge domestic market has long been dominated by foreign multinationals. Analysts here pointed out that Indonesia?s automotive industry needs to take off as a breach of national scientific and technological progress, with related enterprises, give full play to the domestic scientific and technological personnel of intelligence, in the introduction, digestion, improve the process of innovation, the national auto industry development and growth .

Second, the need to attach importance to the development of the automotive industry established its own brand. Automobile industry not only represents a country?s scientific and technological progress, but also a country?s manufacturing industry to the world an iconic industry. Some analysts have pointed out that, as a late start in developing countries, Indonesia?s automotive industry need to develop on its own brand in the creation of long-term planning, after long-term accumulation and innovation, and gradually form a sound development momentum and move towards a competitive international market. Indonesia has a population and personnel of the domestic market potential, there are dozens of auto parts industry development and accumulation, coupled with rapid economic development, these are the creation of its own-brand car to lay a solid foundation.

Finally, the development of the automotive industry need to balance environmental protection. From the current situation in Indonesia, urban environmental protection has already been a huge threat to the growth of the automotive industry. Recently, the Government of Indonesia?s preferential policies to encourage car loans made by the city?s surge in the number of motor vehicles. Jakarta currently total to 6.4 million vehicles, in addition to a greater number of motorcycle. Traffic congestion has grown to affect their normal travel and sustainable economic development of serious proportions. Therefore, in order to protect the urban environment, the Government of Indonesia is expected to re-examine and modify policies, the urban environment to a high degree of long-term development perspective. Indonesia is to develop three-dimensional city bus system, an effective solution to the problem of excessive private car; the use of high taxation and other means of large displacement, gas-guzzling vehicles restricted; strictly old retirement system, such as extensive use of multi-out as soon as possible, still running and a lot of harmful gas emissions from buses.

The development of automobile industry in Indonesia to determine the four objectives are: Southeast Asia?s largest automobile producer, the largest commercial vehicle producer, the largest car market and the largest auto parts production base. Currently, Indonesia is Southeast Asia?s largest auto parts production base. Analysts here predict that, with timely follow-up measures related to the other three targets are likely to be achieved within two or three.

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Source: http://www.finance-ol.com/2011/09/indonesias-automotive-industry-development-potential/

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