Live From Jakarta: Indonesian International Auto Show Coverage

The 19th Indonesian International Motor Show (IIMS) is currently taking place at the JIExpo in the capital city, Jakarta, with almost all the world’s major automakers represented at a show which is quite simply bigger, bolder and brasher than ever before. There is a real spring in the step here as this huge, underdeveloped nation of 238 million people, the fourth-most populated in the world, stands poised to unlock the potential of its auto industry and become a major player on the world stage. Indonesia is standing at a crossroads and everyone is preparing to join the party.

In size terms, IIMS is the second-biggest motor show in South East Asia, behind only Bangkok; in terms of exhibits it is now almost an equal – although when it comes to visitor numbers (expected to peak at 300,000 this year), it is still far behind Thailand’s two annual extravaganzas. Since IIMS upped sticks and moved across town to the bigger JIExpo three years ago this event, which includes all the obligatory visitor entertainments from drifting and stunt driving to Miss Motor Show, has grown quickly; this year 38 brands and 227 suppliers and accessory companies have filled out every available space.

Indonesia, the world’s 18th biggest economy, has seen the auto industry really come out of the blocks and production has accelerated over the last half-decade by an average of 20 percent a year. Last year it broke the 700,000-unit barrier, and the one million mark is only two years away on current trends.

The government has made the auto industry one of its five main priorities and wants to reach the two million production mark in the next 5-6 years. That would see ambitious Indonesia pitching to overtake Thailand, the long time “Detroit of South East Asia.” Hatta Rajasa, the Coordinating Minister for Economic Affairs, said confidently at the opening ceremony that he foresaw Indonesia “outperforming Thailand in a few years.” He also expects Indonesia becoming “the largest automobile market in Southeast Asia”, and, significantly, he sees that achievement going hand-in-hand with becoming the region’s production hub. The global carmakers are themselves jockeying for position now – but waiting for the government to roll out incentives that will see an auto boom. Per capita income here is US$3,000 – “motorization” generally kicks off at around US$5,000 – so the duck are being lined up in a row. Through the first half of the year, 417,687 vehicles have been built. However, exports still represent a drop in the ocean, with around 90,000 units exported for the first six months of the year. This figure is split fairly evenly between CKD and CBU, and much potential here remains has to be unlocked. Johnny Darmawan, the Vice-Chairman of the Indonesian Automotive Industry Association (Gaikindo), believes that production could reach 780-830,000 units for the year.

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Live From Jakarta: Indonesian International Auto Show Coverage
Live From Jakarta: Indonesian International Auto Show Coverage

Topping the range, the new Grand Cherokee starts at IDR1.15 billion for the 3.6 V6 Limited. Meanwhile, in rapid time, the Dodge Journey also made it to the show with the 2.4 four-cylinder unit. It is priced at IDR510 million.




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