Ministry to cut automotive imports by US$700 million

Imports of over-3000 cc cars has been halted for the last two months.

REPUBLIKA.CO.ID, JAKARTA -- Indonesia's Industry Ministry has targeted to cut automotive imports by some US$700 million in 2018 under the import control measures. Previously, the average import of $3.3 billion in 2017.

"We have targeted to reduce automotive imports by at least by US$700 million," Putu Juli Ardika, the ministry's Director for Maritime, Transportation and Defense Equipment Industry, stated here on Wednesday.

Ardika remarked that the import reduction target was the result of the government's policy to temporarily halt the imports of over-3000 cc cars since the last two months, when the rupiah had begun weakening. The decision to stop the imports of luxury cars was aimed at maintaining the country's trade balance.

"(The decision to halt the imports of luxury cars) is targeted to maintain our trade balance. The imports of luxury cars were temporarily stopped. They are not primary goods. If you need cars, you can use domestically produced vehicles," he explained.

The Industry Ministry will further review the import license submitted to the ministry. The imports can be continued under some considerations, including the agreement for the manufacturer to increase exports and expand its business, he elaborated.

"We will control the imports of below 3000-cc cars. We will check which cars will be included in the import control measures," Ardika added.

Earlier, President Joko Widodo (Jokowi) has planned to meet Toyota President Akio Toyoda to invite him to invest more in the automotive industry in Indonesia. Since 2015, within 2.5 years, Toyota's investment had increased Rp22.7 trillion, President Jokowi stated while witnessing the export dispatch of Toyota vehicles at the IPC Car Terminal, Tanjung Priok Seaport, here, Wednesday.

Toyota has surpassed the export of one million cars to Asian, African, Latin American, Middle Eastern, European, and Australian markets in 2018. The head of state lauded Toyota for manufacturing cars in Indonesia and exporting them to international markets. This year, Toyota has set a target of exporting some 217 thousand cars from Indonesia, he remarked.

Jokowi also lauded the Japanese car manufacturer for using local content comprising 74-94 percent in their products. He expressed hope that the use of local content by Toyota would help boost local industries.

Let's block ads! (Why?)