Automotive industry in Indonesia has an increasing significantly in the last five years marked by its
satisfy trend of demand. The automotive industry especially four-wheel vehicles come back again to
incise in achieving its production at 33.5% compared to the same period of the previous year. The
automotive business players are optimistic that national automotive industry will be the foremost
nearly in the ASEAN Regional.
Due to the great market potential in Indonesia has encouraged most of the Brand Holder Agent
(APM) to increase their investment in the automotiveindustry by added its production capacities as
well as the production lines in the market. The APM’s agressive movement has created the
automotive industry to be one of the greatest contributor to national GDP.
The automotive industry has a contribution to Land Transportation’s rate of development in Indonesia,
as can be seen up to 2011 that the Land Transportation’s contribution reached to Rp. 140.6 trillion.
As seen from the development of automotive population in Indonesia since 2006 up to 2010, found
that average population growth at 5% per year.The most rapid rate was motorcycle at 17.6%,
followed by bus at 11% and truck at 7% as well as passenger car at 6.7% per year.
One of the automotive link is component industry. The local component industry up to 2012 is look
like to supply national automotive industry demand as imported substitute and not exported yet.
Some 90% of local automotive component industry absorbed by local market and not exported yet.
Automotive industry devided by two kinds, namely component market for Original Equipment
Manufacturing (OEM), is a component market for automotive assembling and after sales component
market especially for maintenance and replacement.Thanks to the increasing of production and
population as to automotive component was developed well for the some last years mainly on the
after sales component market. Although overshadowed by imported product, the automotive
component market for the after sales component market is still wide-open and keep on growing.