Imported Cars Shouldn’t Flood Indonesian Market, President Jokowi Says

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 2 Agustus 2018
Category: News
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The President answers reporters' questions after attending the 26th Gaikindo Indonesia International Auto Show at ICE BSD, Tangerang, Banten, Thursday (2/8). (Photo by: Agung/Public Relations Division)

The President answers reporters’ questions after attending the 26th Gaikindo Indonesia International Auto Show at ICE BSD, Tangerang, Banten, Thursday (2/8). (Photo by: Agung/Public Relations Division)

It is products of domestic automotive industries that should flood Indonesian market, not imported cars, according to President Joko “Jokowi” Widodo.

“We should continue to be export-oriented. We must control our domestic market and increase export market. We will provide incentives for export-oriented industries so that they can continue to develop,” the President said at the 26th Gaikindo (the Association of Indonesian Automotive Manufactures) Indonesia International Auto Show (GIIAS) at ICE BSD, Tangerang, Banten, Thursday (2/8).

The President also said that the state, the Government, and the industry must also have the same forward-looking vision, that is, to continue to use and develop eco-friendly cars.

Regarding the Rural Multipurpose Mechanical Tool (AMMDes), the President said that it is a multi-purpose tool that not only boosts agricultural productivity in rural areas but could also solve many problems in the regions. “Be it in the form of water, the mobility can be higher; second, for dryer; and third for rice mill in a small form, so that mobility in rural areas can be even better,” the President added.

Regarding the increasingly fierce competition, the President said that every car does not necessarily have a good design. “The percentage of local contents is probably high, but if the price is not competitive, it will be hard to enter the market,” the President said.

This means, according to the President, everything is up to the industry itself and Vocational High Schools have now been taken over by the industry. “If the vocational school’s factory is finished and can manufacture it, go ahead, as it is indeed the Government’s obligation to encourage automotive industry to develop,” the President said.

When it comes to regulation on electric cars, the President said that particularly on taxes, the Government will continue to calculate and review it. “We will review whether the incentives will be provided, including super deductions for taxes, types of cars, or activities that drive automotive innovation industry,” the President said, adding that the calculation has been done for eight months and a study will also be done as soon as possible to encourage the growth of Indonesia’s automotive industry.

For the record, the 26th Gaikindo Indonesia International Auto Show – one of the biggest automotive expos in Indonesia – will take place from 2 to 12 August 2018 and is held under the tagline “Beyond Mobility”.

Also present accompanying the President on the occasion were Cabinet Secretary Pramono Anung, Minister of Industry Airlangga Hartarto, and Minister of Villages, Development of Underdeveloped Regions, and Transmigration Eko Putro Sandjojo. (DND/ EN) (MUR/EP/YM/Naster).

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