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Boosting Indonesia’S Car Exports Through Indonesia-Australia Comprehensive Economic Partnership: Opportunities And Challenges
The Indonesian Government has put the Automotive industry as one of its priority sector in achieving “Indonesia 4.0” and the mid-term goal of improving Indonesia’s economy to be the 10th largest in the world by year 2030.
More specifically, the ICE vehicles export should improve to reach 1 million units per year by 2025, and for the EV industry to be developed and starts producing and exporting EV by 2030. The Covid-19 pandemic has imposed a great obstacle to achieving this goal, as car export decreased by 36% in 2020. The situation was further exacerbated by safeguard measures imposed by the Philippines, Indonesia’s largest car importer.
In its effort to seek new markets, Indonesia should hardly look into starting car export to the Australian market which has great market potentials, and to fully optimize the Indonesia-Australia Comprehensive Economic Partnership, that significantly boosts Indonesia’s cars competitiveness to enter the Australian market.
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