News & Event
Potential Growth in Indonesia's Automotive Market
17 May 2024 - by Admin

Indonesia stands as the largest automotive market in the ASEAN region, commanding a market share of 32 percent. Despite this, the car ownership ratio per 1000 citizens in Indonesia remained significantly lower in 2018 compared to its neighboring countries, standing at only 87 cars. This creates substantial growth potential within the domestic automotive industry.

In 2018, ASEAN witnessed noteworthy car sales, with Indonesia leading the pack at 1,151,284 units. However, the car ownership ratio per 1000 citizens indicated Indonesia's relatively low standing, surpassing only the Philippines and Vietnam in this aspect.

A key strength of Indonesia in the automotive sector lies in its role as a major exporter to over 80 countries worldwide. The automotive and spare parts industries held the position of the third and fourth largest contributors to the country's exports from 2016 to Q3 2019. This underlines Indonesia's robust foundation to actively participate in the global value chain for Electric Vehicles (EVs).

Turning to exports, the top five sectors contributing to Indonesia's export revenue from 2016 to Q3 2019 include base metals for iron and steel, base metals and precious metals for other non-iron products, four-wheel or more vehicles, spare parts and accessories for four-wheel or more vehicles, and machinery for general use.


Source: KPMG Indonesia

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