Indonesia’s automotive industry shifts up a gear | East Asia Forum

In 2012 Indonesia produced more than one million motor vehicles for the first time. Its vehicle output rose 3.6 times during 2000–12. This was a large increase compared with global output growth of 1.4 times, while neighbouring Malaysia’s output only doubled. By 2014 Indonesian output reached nearly 1.3 million vehicles, with exports expected to be around 200,000. Foreign direct investment (FDI) has driven this impressive performance, but now Indonesia’s rising middle class is the main reason for optimism in the automotive industry.

An Indonesian worker inspects a passenger car at the Toyota plant in Karawang, West Java, Indonesia. (Photo: AAP).

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