Indonesia is aiming to produce up to 1.6 million cars this year given the high global uncertainty being experienced currently, an Industry Ministry official Dodiet Prasetyo has said.
The target is slightly higher than the car production recorded in 2022 of around 1.5 million units, he informed at a discussion entitled “Step on the Gas to Reach 2 Million Cars Target”. He said:
“Thus, in 2023, we expect that we can reach more than 1.6 million. Why is this target not too big? Because we know there is still uncertainty that greatly affects industry development in the future.”
Despite this, the government is pushing the industry to expand the export market, he said. So far, at least 400,000 of the 1.5 million cars produced in 2022 have been exported from Indonesia, primarily to ASEAN countries.
The expansion of the export market certainly can increase the existing production target, the official explained. The target has been set based on the achievement in the previous year and will continue to be evaluated every three months. The ministry expects exports to reach up to or more than 500,000 units in 2023, he said.
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Indonesia is already aiming to boost car production to more than 2 million by 2030. This figure includes pure electric cars and hybrid vehicles. Meanwhile, based on the Industry Ministry’s Regulation No. 6 of 2022, the Indonesian government is aiming to produce 400,000 electric cars by 2025 and up to 1 million electric cars by 2035. Within the regulation, electric motorcycle production is targeted to reach 6 million units by 2025 and rise to 12 million units by 2035.
As per the ministry’s records, the performance of the automotive industry improved in 2022, with the total production of four-wheeled vehicles reaching 1.4 million units, a 31% increase compared to 2021. Sales also reached 1.04 million units, reflecting an 18% increase compared to the previous year, while exports of completely built unit (CBU) cars stood at 473,000 units, a 61% increase compared to the previous year.
A 3d animation professional with over 20 years of industry experience having served in leading organizations & production facilities of Pakistan, an avid car enthusiast and petrolhead with an affection to deliver writings to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com