News Room - Business/Economics

Posted on 18 Mar 2009

Down, sale of car, motorcycle parts and equipment (Indonesia)

The sale of car and motorcycle parts and equipment in Indonesia has dropped very sharply along with the drop in the sale of motor vehicles by 23 percent in January.

 

"Car and motorcycle equipment sales are hindered by illegally imported products in the country," the general chairman of the Association of Motorcycle and Car Equipment Industries (GIAMM), Hadi Surjadipraja, said here on Tuesday.

 

He did not mention percentage of the drop in sale of car and motorcycle equipment but said the drop equalled the slump in motor vehicle sales, which according to data of GAIKINDO, reached 23 percent.

 

Automotive sales in Indonesia in January 2009 reached only 31,567 units compared to 41,114 units in the same period last year. Production meanwhile followed to drop from 46,063 to 30,268 units.

 

"The government must continue with its stimulus plan so that the real sector continues to move while the people`s buying power will increase. The most important thing is the immediate implementation of the stimulus," he said.

 

He said he also called for increased supervision against illegal imported products. He said illegal car and motorcycle equipment products from China and Taiwan continued flooding the domestic market.

 

The head of the subdirectorate of industrial cooperation and investment promotion, Syarkani Salam, admitted that lots of imported spareparts from China and Taiwan were sold in the country.

 

He said the government had already tightened its control over the products.

In connection with it Syarkani called on domestic manufacturers to increase their production and quality of their products so that they could compete at home as well as abroad.

 

He said the government had also invited investors from China and Taiwan to invest in the country for a fairer competition, while the government and the people would enjoy the benefit.