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Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association , said the region east of Jakarta is selected by many car manufacturers for their production base since a decade ago as the area’s infrastructure is good . He added that it has now become difficult to find large-sized land for new factories due to the influx of many businesses over the past years. Currently, this electric motorcycle is in the massive production to produce 50 thousand units and will be in the marketplace in 2018.

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The government set several terms and conditions for the manufacturing of LCGCs. For example, fuel consumption is required to be set at least 20 kilometers per liter while the car must consist – for 85 percent – of locally manufactured components . In exchange, the LCGCs are exempted from luxury goods tax, which allows manufacturers and retailers to set cheaper prices. On the long-term, the government wants to turn Indonesia into an independent car manufacturing country that delivers completely built units of which all components are locally-manufactured in Indonesia. Indonesia is the second-largest car manufacturing nation in Southeast Asia and the ASEAN region . However, due to robust growth in recent years, Indonesia is expected to somewhat limit the gap with Thailand’s dominant position over the next decade.

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Cadillac cars were disassembled, the parts were mixed together, 89 parts were removed at random and replaced from dealer’s stock, and the cars were reassembled and driven 800 km without trouble. Stanley brothers in the United States, however, continued to manufacture steam automobiles until the early 1920s. United States completely dominated the world industry for the first half of the 20th century through the invention of mass production techniques.

The Indonesian government also has high hopes for the country’s car exports , particularly since the implementation of the ASEAN Economic Community , which turns the ASEAN region into one single market and production area. The AEC should unlock more opportunities for exporters as it intensifies regional trade. Once technological and regulatory issues have been resolved, up to 15 percent of new cars sold in 2030 could be fully autonomous. Electric starter, a significant innovation in promoting the acceptability of the gasoline-powered automobile.

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Still, there are no major concerns about this situation as domestic car demand has ample room for growth in the decades to come with Indonesia’s per capita car ownership still at a very low level. Most industry players and experts agree that the four trends will reinforce and accelerate one another, and that the automotive industry is ripe for disruption. Given the widespread understanding that game-changing disruption is already on the horizon, there is still no integrated perspective on how the industry will look in 10 to 15 years as a result of these trends.

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