Indonesia’s auto sector urged to improve regulations

Illustrative image (Source: gbgindonesia.com)

Jakarta (VNA) – Various regulations have hindered Indonesia’s automobile manufacturing and the country’s car exports are still lagging behind its neighbours like Thailand, General Secretary of the Indonesian Automotive Industries Association (Gaikindo) Kukuh Kumara said.

According to Kukuh, Indonesia's actual production capacity reaches 2.3 million cars per year. However, only 1.2 million units can be produced annually and car exports hit 300,000 last year.

The official stressed that the country needs to improve domestic regulations, which must be in harmony with those in the global market.

In addition, Indonesia should enhance the vehicle certification testing system as such tests are currently conducted abroad.

The certification of vehicle safety also needs to be improved to meet the growing demand of foreign customers, he added.

As some 33 percent of vehicles marketed in ASEAN are from Indonesia, which is striving to take the lead in the regional automotive industry, Kukuh said./.