Jakarta (ANTARA) - The ratio of four-wheeled vehicle ownership in Indonesia is rather low, but it presents a huge potential for automotive manufacturers to invest in the country, Industry Minister Agus Gumiwang Kartasasmita has said.

He further said that based on the data he has received, the ratio of four-wheeled vehicle ownership in Indonesia is only 99:1,000 people, among the lowest in Southeast Asian countries.

"From the data, (the ratio for) Singapore was 400:1,000, Malaysia was 200:1,000, Thailand was 300:1,000, and Brunei was 700:1,000. While Indonesia's ratio of four-wheeled motor vehicle ownership was only 99:1,000," Kartasasmita informed here on Wednesday.

"This is a very big potential for automotive manufacturers to invest in Indonesia because we (the government) will also accommodate it with policies that will support the investment," he added.

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According to the minister, the government has been pushing for Indonesia to be included in the world's 10 largest economies by 2030, which means it will have a positive impact on people's purchasing power.

Thus, Kartasasmita said, public demand to purchase vehicles will escalate.

"This is a very good time for the automotive industry to enter Indonesia, to fulfill the domestic needs that are increasing, and to make Indonesia a vehicle export hub," he added.

He then cited data showing that the national automotive industry currently has more than 21 four-wheeled vehicle manufacturers with a production capacity of 2.35 million units per year.

While the rate of both direct and indirect labor absorption is about 1.6 million workers, that involves many small and medium-sized industries, especially in the component sector.

Furthermore, in 2021, the value of the investment in the national automotive sector was recorded at around US$1.5 billion, or Rp22.5 trillion, or up 220 percent from the previous year.

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Translator: Fathur R, Kenzu T
Editor: Suharto
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