Interview: Indonesia expected to surpass target of vehicle sales in 2011

09:00, June 13, 2011      

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Indonesia is expected to surpass target of vehicle sales in 2011 following the country's domestic economic growth, an executive told Xinhua in an exclusive interview on Sunday.

Gunadi Sindhuwinata, president director of PT Indomobil Sukses International, a leading automotive company, and chairman of the Indonesian Motorcycle Industry Association, said that this year, automotive business players have forecasted car sales of 820,000 and motorcycle sales of 8.4 million from 736,000 and 7.4 million, respectively, in 2010.

"However, from what we have seen in the first quarter of 2011, we can be optimistic that we could reach car sales of about 900, 000 this year," said Sindhuwinata.

He said that even though there was a growth decline in May compared to April, due to much higher growth in several months before, there is no evidence showing declining trend.

"It's just 'conditional factor'. The most important thing is that there is no declining trend," he said.

He said that mobility needs that are supported by good economic growth have been spurring the uptrend.

"Of course, it impacts on exaggerating traffic jam in big cities but the phenomenon is evidence that our economy runs well," said Sindhuwinata.

The most important thing is, he said, the uptrend sales must be balanced with improving infrastructures, especially roads.

"We just don't talk about how many kilometers roads should be built. But we should emphasize the roads quality as well as traffic management," he said.

Related to export, he said, Indonesia is expected to send 20 percent of vehicle production abroad this year.

"Unfortunately, I don't know the figures exactly. However, the most important thing is that Indonesian automotive industry must increase its competitiveness," he said.

He said that infrastructure development is a must in Indonesia to further help increase its competitiveness.

According to Sindhuwinata, Indonesia's automotive industry will be spurred by recovering automotive component industry in Japan.

"Even though component supply had been interrupted for a period of time due to strong earthquakes in Japan that disrupted production of about 500 component companies, but starting June, about 300 companies have been recovering," he said.

He praised the speed recovery, citing Japanese as hard working society.

"Six week after the strong earthquake, the country had started to restore infrastructures, not their houses. They have a though that restoring infrastructures first will provide them an easier access to restore others," he said.

Source: Xinhua
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