Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Indonesia Car Exports Set to Hit $5b in 2014Friday, June 06, 2014 > 15:31:04
Jakarta. Indonesia expects to boost the value of exports of cars and automotive parts this year as part the country’s efforts to increase its foreign-exchange earnings.
The government expects the value of exported automotive products from Indonesia to increase to almost $5 billion this year, a high-ranking official at the Trade Ministry said on Thursday.
“At first, we targeted car export value to grow by 5 percent this year, but we may actually see growth by 10 percent to $4.8 billion,” Ari Satria, director of market development and export information at the Trade Ministry, told reporters.
The country had $4.4 billion in foreign-exchange earnings from cars in 2013. Indonesia is the second-biggest automotive hub in Southeast Asia, after Thailand.
Last year, Indonesia exported 170,907 completely built units (CBU) of cars, 105,380 completely knocked-down (CKD) cars, and 12.3 million car components, according to the Indonesian Automotive Industry Association (Gaikindo).
“We also aim to increase our automotive product exports to Thailand, Saudi Arabia, the Philippines, Japan, and Malaysia,” Ari said.
Several big automotive distributors in Indonesia include Astra International and Indomobil Sukses Internasional.
The country’s auto manufacturers, which include Astra Internasional, Toyota Motor Manufacturing Indonesia (TMMI), and Suzuki Indomobil Motor, have been increasing their sales abroad.
TMMI, the local manufacturing unit of the Japanese automaker, said in early May that it aimed to sell 152,000 CBU cars to overseas markets this year, which would be a 30 percent from last year.
Indonesia’s overseas markets include Vietnam, the Philippines, Malaysia, and Middle Eastern countries.
The government has been boosting foreign-exchange earnings as exports of other goods and commodities such as coal due to slowing demand in the global market.
The country typically sells coal and crude palm oil to other nations including China, India and European countries.
Apart from car sales, Indonesia also counts on foreign exchange receipts from tourism.
The country is targeting to generate more than $10 billion in foreign exchange from foreign arrivals this year, more than the $9 billion it recorded in 2013, according to previous reports.