Improved domestic economic growth has influenced the increase of community activities. Therefore, the community’s need for transportation, both individually and publicly, continues to show significant development.
The need for transportation means then had a positive impact on the growth of the automotive industry sector in Indonesia. Data from Gabungan Industri Kendaraan Bermotor Indonesia / GAIKINDO (The Association of Indonesia Automotive Industry) shows that over the past five years, 2013-2017, the production capacity of automotive products comprising of passenger vehicles and commercial vehicles, has steadily climbed.
The positive movement of production capacity was eventually able to contribute significantly to Indonesia’s National GDP. Furthermore, a number of economic experts or automotive industry observers, predict that the level of sales of automotive products in Indonesia will continue to generate a positive trend until 2020. Not only in domestic market, the sales of Indonesian automotive products in several export markets also showed a development.
Thus, since 1996, the government of Indonesia has begun to accelerate the Intensive Program for national automotive companies to use local components to get deductions or even exemption from import duties. In addition, the government also consistently applies the regulation on the use of biofuel for all types of vehicles starting on September 1, 2018.
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