The Indonesian government is hopeful that the country's automotive industry will continue to increase car exports globally, with Australia being a key target market. Ekko Harjanto, Assistant Deputy for Industrial Development at the Coordinating Ministry for Economic Affairs, stated that Australia presents a highly potential market. "Australia shows great potential; efforts should be intensified. In the post-COVID-19 recovery trend of 2023, Australia imported many cars from China, reaching around 72,000 units," Ekko said in Tangerang recently. Adhyanti Sardanarini Wirajuda, Director of ASEAN Economic Cooperation at the Ministry of Foreign Affairs, mentioned that the government is continuously overseeing and discussing various trade agreements. "We can inform you that concerning Australia, there are two relevant free trade areas: the ASEAN-Australia-New Zealand Free Trade Area, which includes 10 ASEAN countries, Australia, and New Zealand," she said. "Currently, four member countries have ratified this agreement, which will take effect and offer several benefits for businesses, particularly regarding tariffs."
Adhyanti also highlighted that Indonesian businesses are facilitated by the Regional Comprehensive Economic Partnership (RCEP). "This is the largest free trade agreement with 15 members, including Australia. It contains several provisions and regulations that can benefit Indonesia and its businesses," she said. "Additionally, there is the Indonesia-Australia Economic Partnership Agreement on a bilateral level," Adhyanti added. According to data from the Association of Indonesian Automotive Industries (Gaikindo), Indonesia's complete car exports in 2023 reached 505,134 units, an increase of 6.7% from 473,602 units in 2022. However, this positive record declined in the first half of 2024. From January to June 2024, Indonesia's complete car exports totaled 218,333 units, a decrease of 12%, with a shortfall of 29,671 units compared to the same period in 2023. Furthermore, car exports in completely knocked down (CKD) form dropped significantly by 31%, from 29,337 set units to 20,267 set units in the same period.
