Jakarta –
Indonesian car ownership is still considered low. Out of 308 people, only 1 person owns a car.
“Our calculation is the ratio of car purchases, 1 car is new for 308 people. So out of 300 people only 1 buys a car,” said LPEM UI automotive observer Riyanto in the Step Gas Workshop to Pursue the Car Market Target of 2 Million Units, in Jakarta, Thursday (23/2/2023).
This number is still less than neighboring countries Malaysia and Thailand. In Thailand, 1 out of 100 people owns a car. In Malaysia, out of 64 people, 1 person owns a car.
“Malaysia indeed every 64 people, 1 buys a car. Then Thailand every 100 people, 1 person buys a car,” he said.
However, he is optimistic that the sales target of 2 million cars in 2030 can be achieved. With a record of 150 Indonesians buying 1 car.
“So if 150 people, 1 person can buy a car, every 150 there is 1 who buys a car, so that can be 2 million,” he said.
That level, he said, is very likely to be achieved, because Indonesia contributes 40% of Asean’s population. However, Indonesia only contributes 40% of the ASEAN car market. In the last seven years, the car market has not moved at the level of 1 million units, and even dropped to 532 thousand units in 2020 during the Covid-19 pandemic.
Similar optimism was conveyed by the Head of Sub Directorate of Land Transportation Equipment Industry, Directorate General of IMATAP, Ministry of Industry, Dodiet Prasetyo. Even though the ownership ratio is still low, the car market in the future has the potential to grow rapidly.
“The government can intervene to increase production capacity and car sales,” he said.
For information, last year domestic car sales reached 1.013 million units, up 18% from 2021. Meanwhile, exports of completely built up (CBU) cars skyrocketed 60% to 473 thousand units. Thus, the total car production reached 1.4 million units.
On the other hand, the government had targeted car production to reach 2 million units by 2025. Of that amount, 1.69 million units were domestic sales, while the rest were exported.
Furthermore, in 2030, car production is targeted to reach 3 million units. At that time, the domestic market was targeted to penetrate 2 million units or 2.1 million units to be exact, while exports were targeted at 900 thousand units.
However, this target has not been standardized in official regulations. So far, the government’s official target that has been standardized into regulations is the production of four-wheeled Battery Electric Vehicles (BEV) to reach 400 thousand units in 2025, then 600 thousand units in 2030, and 1 million units in 2035. The legal basis is Permenperin 6 of 2022.
(zlf/zlf)
