He added that it has now turn into tough to search out large-sized land for new factories as a outcome of influx of many businesses over the past years. In terms of market measurement, Indonesia is the most important automobile market in Southeast Asia and ASEAN. Indonesia accounts for about one-third of whole annual automobile sales in ASEAN, adopted by Thailand on second place. Indonesia not only has a big inhabitants but is also characterised by having a quickly increasing center class. Indonesia is the second-largest car manufacturing nation in Southeast Asia and the ASEAN region .
The AEC should unlock more opportunities for exporters as it intensifies regional trade. Meanwhile, the premium car market in Indonesia is definitely quite small. Only about 1 % of total automotive sales in Indonesia contain premium brands similar to Mercedes-Benz and BMW. Due to the better financial coverage and the tip of the economic slowdown in 2016 (GDP progress accelerated to 5.02 p.c y/y), Indonesian car sales finally rebounded in 2016. Electric starter, a major innovation in selling the acceptability of the gasoline-powered car.
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