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Indonesia Car Export Set to Cross $2 Billion in 2008
Mar 14, 2008

Car exports from Indonesia, including CBU, CKD, and automobile components, have been growing. The total export value touched $2.1 Billion in the country last year.
 
According to the data given by Industrial Ministry of Indonesia, the export of finished cars, car kits and car components reached $2.1 Billion previous year. This year, the industry is aiming to further raise the export of car and auto components to US$ 2.9 Billion, as reported by news.xinhuanet.com
 
The industry has projected the export of Completely Built-up (CBU), auto parts, and Completely Knocked Down (CKD) cars to go up by around 40% in terms of value in 2008. It is expected that export of CBU cars will reach to 75,000 to 80,000 Units against 55,000 Units last year.
 
Budi Darmadi, Director General, Transportation Vehicle Industry & Telematic, Industry Ministry, said, “Indonesia is optimistic the value and volume of car and automotive component exports would increase in 2008 as car making principles were increasingly allowing the automotive industry in Indonesia to export”, as reported by antaranews on February 6, 2008.
 
There are many factors supporting the forecast for increasing export from Indonesian automotive industry this year. Tanjung Priok, a newly built carport in Jakarta Special Province, is one of them. It is expected that this port will boost the production and provide a platform to producers to export their cars and automobile components in different countries worldwide. Moreover, this port facilitated producers to export their cars conveniently, which earlier was a very difficult task.
 
Besides, Indonesia is rapidly transforming itself by building new infrastructure facilities and modernizing the existing ones. Improvement in transportation facilities will draw investors who earlier steered clear of investing in the country or making it their production base. The Indonesian automotive industry has the potential of producing 900,000 Units annually, however, the domestic market is expected to consume over 500,000 Units this year. Hence, it becomes inevitable for car producers to increase export so that surplus production could be disposed in the international market. 
 
According to a Research Analyst at RNCOS, “Indonesian automotive industry grew phenomenally last year and export of cars and car components touched a new high. This high growth reflects that coming years will be very fruitful for the industry but to maintain this growth rate, the industry should keep introducing new models of cars.”

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