Indonesia’s car export predicted to halve in 2020

Indonesia’s car exports are forecast to drop by 50 percent in 2020 due to large-scale social restrictions amid the COVID-19 pandemic, according to Association of Indonesian Automotive Manufacturers (Gaikindo).

22, May. 2020

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JAKARTA, VNA - Indonesia’s car exports are forecast to drop by 50 percent in 2020 due to large-scale social restrictions amid the COVID-19 pandemic, according to Association of Indonesian Automotive Manufacturers (Gaikindo).

In April, the country’s domestic car sales nosedived by more than 90 percent year-on-year.

Gaikindo also slashed Indonesia’s car export target to 175,000 units in 2020 from the initial target of 350,000 to 400,000 units.

Chairman of Gaikindo Yohannes Nangoi said it will be difficult for the country to reach its export target of 1 million cars by 2025.

Indonesia’s consumer confidence index plummeted to its lowest level in 12 years as consumers expressed pessimism amid the pandemic, according to a recent Bank Indonesia (BI) survey.

Yohannes said the health crisis threatened 1.5 million automotive industry workers in the country, though Gaikindo members agreed to avoid layoffs. - VNA