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.
Related news: Indonesia to apply fair play for automotive industry: Minister
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.
Related news: Indonesia seeks to export cars to Australia in first quarter
Translator: Fathur R, Kenzu T
Editor: Suharto
Copyright © ANTARA 2022
