Minister of Industry Agus Gumiwang said the ratio of ownership of four-wheeled vehicles in Indonesia is relatively low. So, according to him, there is a huge potential for automotive manufacturers to invest in the country. Agus said that based on the data he received, the ratio of four-wheeled vehicle ownership in Indonesia was only 99:1,000 people, being one of the lowest compared to other countries in Southeast Asia. "Thailand has 300 or so, Brunei has 700 even. This is a very low ratio of ownership of four-wheeled motorized vehicles in Indonesia, only 99 per 1000 (people)," Agus said in Jakarta, Wednesday (16/3/2022). "This means that this is a very, very large potential for automotive manufacturers to invest in Indonesia because we will also complement it, support it with policies that will certainly be pro, will support their investment," he added. Agus said that currently, the government is also continuing to push for Indonesia to be included in the 10 largest economies in the world by 2030, which means it will have an impact on increasing people's purchasing power.
"So this is the right time for the automotive industry to enter Indonesia, in addition to supplying domestic needs which I believe is getting higher and higher with a very low ratio of vehicle ownership, and also to make Indonesia a vehicle export hub," said Agus. The national automotive industry currently consists of 21 industrial companies of four or more wheeled vehicles with a production capacity of 2.35 million units per year. The absorption of labor, both directly and indirectly, is around 1.6 million workers, involving many small and medium industries, especially in the component sector. The investment value in the national automotive sector in 2021 is recorded at IDR 22.5 trillion, an increase of 220 percent from the investment value in 2020.
