Indonesia government is determined to change Indonesia to be a global automotive production center by inviting big automotive producers to set up their factories in Indonesia.Therefore, in turn it will be able to replace Thailand as the Southeast Asia and the ASEAN Region’s biggest production center.
Furthermore, the government would like to change Indonesia to be an independent automotive producer country producing automotive units which are all produced domesticly.
In sales contex in ASEAN region, nowadays Thailand controls some 43.5% as Indonesia places in the second rank with 34% of market share. Source : https://www.indonesia-investments.com (July 12, 2017)
As one step to accelerate the automotive part and component industry growth in Indonesia, the goverment provides an incentive such as import duty reduction for automotive part & component raw material. Through the policy, the government pushes the automotive producers to take part in developing the automotive part & component manufacturing domesticly.