Ministry Of Industry: Car Ownership Ratio In Indonesia 87: 1000, Can Be Increased Again

Illustration. (Photo: Ministry of Industry)

JAKARTA - The Director General of Metal Industry, Machinery, Transportation Equipment and Electronics of the Ministry of Industry, Taufiek Bawazier, said that the automotive industry has a large enough prospect to grow in the ASEAN market. Because, Indonesia has a contribution of 32 percent of 9 countries in ASEAN.

Not only that, said Taufiek, in the Indonesian market, the automotive industry has the potential to grow. For one thing, the ratio of cars in Indonesia is still low.

"We see future prospects, especially in ASEAN, we actually have a very large market. Then in terms of our car ownership ratio of 87 cars per 1,000, it can actually be moved again. This is what maybe the prospect of our automotive industry is still big again," he said. , in Webinar # 3 Road to IDF 2021 with the theme "Prospects for the National Automotive Industry Sector's Economic Recovery", Wednesday, October 14th.

Taufiek said that the ratio could still be moved again so as to create a bigger prospect for Indonesian automotive. In addition, the majority of car sales in Indonesia are still at quite affordable prices, namely Rp. 200 million to Rp. 300 million. This price is influenced by Indonesia's GDP per capita which is still at 4,000 US dollars.

"The increase in the ratio is in line with increasing purchasing power, namely increasing the GDP which is still 4,000 US dollars, while European countries' GDP has reached 40 thousand to 50 thousand US dollars," he explained.

However, said Taufiek, to support the growing automotive industry sector, regulations are needed. Not only that, this regulation will also help economic recovery in the era of the COVID-19 pandemic. One of the recommendations by the Ministry of Industry is the exemption of tax on new cars up to zero percent.

"The determinant of all of this is demand. How can people drive this economy. Other efforts could propose to reduce temporary local taxes until December (2020) to increase recovery ," he said.

Previously, he said, the government had issued a fiscal instrument for the factory, namely IOMKI, which was a requirement to operate during the COVID-19 pandemic. Then, from the industrial side, it is proposed to issue fiscal incentives in the form of reducing taxes, electricity, gas prices and other costs which are industrial burdens.

The automotive sector, said Taufiek, had a very big impact on the national economic sector. Because it is not surprising that many countries, including Indonesia, provide stimulus to this sector. Among these, Spain issued nearly 4.2 billion euros in instruments, France around 8 billion euros, and Italy nearly 22 billion euros.

"Do not let the markets of 80 countries that we have exported to be taken by other countries. This is our concern so that we are more competitive. So if our automotive industry has a domestic impact, we can also export we can expand the market even more. "he said.