The Minister of Industry suggested that automobile manufacturers lower vehicle prices to increase consumer purchasing power. Chinese car manufacturer BAIC stated that profits from selling cars in Indonesia are not significant because, in addition to production costs, taxes must be paid during the initial import phase, making further price reductions difficult. However, BAIC often offers special promotions for its products, such as discounts of up to IDR 70 million on the BAIC X55-II produced last year, to stimulate sales. The Minister of Industry also hopes that manufacturers will carry out consumer- and environment-oriented innovations, and the government will continue to provide support. According to data from the Indonesian Automotive Industry Association, total wholesale car sales last year were 865,723 units, a year-on-year decrease of 13.9%, and retail sales also fell by 10.9% to 889,680 units. Although declining, it has exceeded the revised target of 850,000 units.
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Indonesian Minister of Industry Hopes Automakers Lower Prices to Boost National Purchasing Power
The Minister of Industry suggested that automobile manufacturers lower vehicle prices to increase consumer purchasing power. Chinese car manufacturer BAIC stated that profits from selling cars in Indonesia are not significant because, in addition to production costs, taxes must be paid during the initial import phase, making further price reductions difficult. However, BAIC often offers special promotions for its products, such as discounts of up to IDR 70 million on the BAIC X55-II produced last year, to stimulate sales. The Minister of Industry also hopes that manufacturers will carry out consumer- and environment-oriented innovations, and the government will continue to provide support. According to data from the Indonesian Automotive Industry Association, total wholesale car sales last year were 865,723 units, a year-on-year decrease of 13.9%, and retail sales also fell by 10.9% to 889,680 units. Although declining, it has exceeded the revised target of 850,000 units.