RI poised to dominate ASEAN

Rangga D. Fadillah

Padangekspres.net-Coordinating Economic Minister Hatta Rajasa was upbeat on Friday that Indonesia would soon become the largest automotive market in ASEAN, given current trends.

He continued that, with current income per capita at US$3,500, wealthier people’s purchasing power would allow industries, including the automotive, to grow faster.

“I believe that we will outperform Thailand in the coming few years, not only becoming the largest
automobile market in Southeast Asia, but also the largest production hub for the East Asian market,” he said, when opening the 19th Indonesia International Motor Show (IIMS) at the Jakarta International Expo Center in Kemayoran, Central Jakarta.

To accelerate the automotive industry’s growth, it is necessary to develop better infrastructure in order to improve productivity and competitiveness, said Hatta.

The precise plan has been included in the newly launched Master Plan for the Acceleration and Expansion of Indonesian Economic Growth, he revealed.

The master plan contains development plans in six economic sectors: energy-related development in Sumatra; industry and services in Java; mining in Kalimantan; agriculture, forestry and fisheries in Sulawesi and North Maluku; tourism and food in Bali and Nusa Tenggara; and natural and human resources in Papua and Maluku.

Hatta also promised the government would provide tax allowances for environmentally friendly cars. The incentive is scheduled to be issued in August at the latest.

Separately, Indonesian Automotive Industry Association (Gaikindo) deputy chairman Johnny Darmawan reported that Indonesia’s automotive industry was indeed enjoying a very conducive period.

He said production in 2010 jumped 51 percent from 2009.

Sales hit 764,710 in 2010, accounting for 30.6 percent of the market share in Southeast Asia. The market contracted in 2009 due to the financial crisis, in which only 486,061 units were sold.

Gaikindo estimates that by the end of this year, sales might peak at between 780,000 and 830,000 cars.

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