Coordinating Ministry For Maritime Affairs And Fisheries: Indonesia's Automotive Industry Has The Opportunity To Grow Bigger In 2030

JAKARTA - Deputy for Infrastructure and Transportation Coordination of the Coordinating Ministry for Maritime Affairs and Investment (Kemenkomarves) Rachmat Kaimuddin said the Indonesian automotive industry has a greater chance of growing by 2030.

This belief is driven by several factors. One of them is the increase in gross domestic product (GDP) per capita, which is predicted to increase the number of car ownership in Indonesia.

According to Rachmat, citing World Population Review data, currently with GDP per capita Indonesia of around US$5,000, the ratio between car ownership and the total population of Indonesia is still relatively low compared to other countries. Currently, the ratio of car ownership in Indonesia is 82 units per 1,000 people.

Meanwhile, other countries in Southeast Asia, such as Thailand, which have a GDP per capita of around 7,000 US dollars, have a car ownership ratio of 280 units per 1,000 people.

Then, China with a GDP per capita of $13,000 has a car ownership rate of 221 units per 1,000 people.

However, Rachmat believes that Indonesia will have a great opportunity to increase this number by 2030.

"If Indonesia's GDP goes up to 10,000 US dollars by 2030, the level of car ownership may reach 150 or 200 units per 1,000 people," he said, quoted by Antara, Saturday, March 2.

He further said that the Indonesian automotive industry also has the opportunity to grow bigger considering that Indonesia is the largest vehicle market and producer in Southeast Asia.

Currently, about 40 percent of Indonesia's automotive industry production has been exported to various ASEAN countries, the Middle East, North America, and South America.

He detailed that Indonesia's exports to ASEAN vehicles were 54 percent of total exports, followed by the Middle East 18 percent, North America 15 percent, South America 6 percent, East Asia 4 percent, and Africa 1 percent.

The total number of vehicles exported during the January-December 2023 period is around 571 thousand units to more than 90 destination countries.

"With this great potential, Indonesia has the opportunity to become an export hub in this area, especially for the passenger car market," he said.

"So don't hesitate to make Indonesia an export hub in this area, especially for the passenger car market," said Rachmat.