Skip to main content

Indonesian opportunity

The Indonesia Government has launched an incentive scheme for manufacturers of Low Cost Green Cars. The government’s aim is to make Indonesia the ASEAN production hub for LCGC’s ahead of the start of the ASEAN Economic Community in 2015. Production has been forecast to reach 1.5 million units by 2014 and 2 million units by 2016.
With the development of a production hub for low cost green cars (LCGCs), Indonesia hopes to become the leading car producer within ASEAN. Total car sales in ASEAN in 2012 surpassed three million.  The two largest contributors to these sales were Thailand (1.3 million) and Indonesia (1.1 million).  Currently, Thailand is still the largest car production hub in the ASEAN region, both in terms of production rate and domestic sales, despite having only 60 million citizens to Indonesia's 240 million.

Eleven automotive manufacturers in Indonesia are currently interested in participating in the incentive scheme, which is still in the early stages of implementation.  For UK companies with expertise in this field, there is a potential opportunity to work with car manufacturers in Indonesia on the provision of the technologies needed to meet the requirements of the scheme.

The UKTI can provide the details of the car manufacturers in Indonesia with plans to participate in this government incentive scheme for LCGCs.  Under OMIS, the UKTI can undertake to introduce a UK company and their products to the manufacturer in Indonesia, gauge interest and arrange a visit programme, if required.

Responses are needed by 20 December 2013. For further information contact:
Sher Allan, Advanced Manufacturing, Strategic Trade Group, UK Trade & Investment, Europa Building, 450 Argyle St., Glasgow G2 8LH.  Tel: +44 (0)141 228 3609  E-mail: