IndoAutomotive 2009 Shown Promising Signs for Industry

IndoAutomotive 2009 Shown Promising Signs for Industry
(Published in Autoparts Magazine, October 2009 Issuance, page # 72)

During August 12 – 15, 2009, the 2nd Indonesian Automotive Parts and Accessories Exhibition 2009 successfully held at Jakarta International Expo Kemayoran. As the major event in the automotive spare parts and accessories industry, it received massive media coverage of over 100 newspapers, magazines, websites, TVs, radios and so on.

The organizer has based its predictions response to the first show. 76% of the exhibitors achieved their goals at the show and 82% immediately decided to attend the next one.

Among satisfied exhibitors at 2009 was Mr. Rony Pranoto, Engineer Manager of Laksana Teknik Makmur, PT “Participating this event make our company more be known by other companies and enhance out network to new customer and distributor. We confirmed to join in the next IndoAutomotive.” And also stated by Mr. Kelvin Chong, Senior BD Manager, Juken Technology from Singapore “This is good opportunity to understand the local market and get a feel about country and culture.”

IndoAutomotive returns at an opportune time for the country’s automotive sector, which saw a strong rebound in production of 2008 and is forecast for further growth. Consultant Business Monitor International (BMI) forecasts positive growth to be sustained through to 2012, and also expects production to receive a fillip from potential major investment.

Renault, for example has approached the Indonesian investment authorities with plans for a potential US$600 million plant, which would become the carmaker’s South East Asia production hub. General Motors (GM) is also considering Indonesia for a new plant for its Chevrolet models, while South Korea’s Hyundai has invested in a commercial vehicles joint venture and Japan’s Toyota is also boosting production.

Consequently, BMI expects Indonesia automobile production to surpass 500,000 units by 2010, rising to just short of 625,000 by 2012. Increased production activities should also give rise to the market’s growing export industry, which BMI expects to account for over 30% of domestic automotive production by the end of the forecast period.

Indonesia is also expecting strong investment in the motorcycle sector, which turned out at estimated 4.6 million units in 2008. Multinational motorcycle manufacturers such as Yamaha will invest an estimated total of around $250 million in 2009 to boost production capabilities. (*)