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Indonesia aims to produce 1.6 million cars in 2023


The Industry Ministry is aiming to produce up to 1.6 million cars this year given the high global uncertainty being experienced currently, a ministry official Dodiet Prasetyo has said.

The target is slightly higher than the car production recorded in 2022 of around 1.5 million units, he informed at a discussion entitled “Step on the Gas to Reach 2 Million Cars Target” here on Thursday.

“Thus, in 2023, we expect that we can reach more than 1.6 million. Why is this target not too big? Because we know there is still uncertainty that greatly affects industry development in the future,” he added.

Despite this, the government is pushing the industry to expand the export market, he said.

So far, at least 400 thousand of the 1.5 million cars produced in 2022 have been exported, primarily to ASEAN countries.

“The expansion of the export market certainly can increase the existing production target,” the official explained.

The target has been set based on the achievement in the previous year and will continue to be evaluated every three months.

The ministry expects exports to cross 400 thousand units and reach up to or more than 500 thousand units, he said.

The ministry is already aiming to boost car production to more than 2 million by 2030. This figure includes electric cars, including pure and hybrid vehicles.

Meanwhile, based on the Industry Ministry’s Regulation No. 6 of 2022, the government is aiming to produce 400 electric cars by 2025 and up to 1 million electric cars by 2035.

Within the regulation, electric motorcycle production is targeted to reach 6 million units by 2025 and rise to 12 million units by 2035.

As per the ministry’s records, the performance of the automotive industry improved in 2022, with the total production of four-wheeled vehicles reaching 1.4 million units, a 31-percent increase compared to 2021.

Sales also reached 1.04 million units, reflecting an 18-percent increase compared to the previous year, while exports of completely built unit (CBU) cars stood at 473 thousand units, a 61-percent increase compared to the previous year.

Source : Antara News