Indonesia Automotive Industry: How Important is Important
In 2012, Indonesia car production reach more than 1 million cars for the first time. In 2015 Indonesia car production reach 1.098 million cars (oica.net) decline 15%, the sales of cars only reach 1 million cars (decline 18%), it missed the target of 1.6 million production. Thailand is the closest competitor for Indonesia (some says due to tax incentive and integrated industrial approach). Thailand has 2,390 parts supplier compare with only 850, and has 400,000 employment, compare with 115,000 in Indonesia.
Although the share of manufacturing industry in GDP is big. Indonesia is not a player in car manufacturing business. It is rank 17th in term of production.
Dawn of Industrialisation? the Indonesian Automotive Industry, 2014, Natsuda Otsuka
How not to industrialise, Indonesia’s Automotive Industry, 2000 Aswicahyono & Basri
Indonesia Automotive Industry – Austrade 2015