Mari Pangestu: The Champion of Free Trade - The President Post

C4
July 12, 2010
The President Post
www.thepresidentpost.com
Automotive
Gaikindo: Where Automobile Producers and
Dealers Unite for a Noble Purpose
By Diana Sasmita
This association was established in 1969 as a non-profit organization and now has 16
assembling companies, 21 distribution agents, seven spare parts suppliers and four companies
supplying the industry’s primary components as its members.
GAIKINDO MEMBERS
No. COMPANY BRAND S D M
1 PT. ASTRA DAIHATSU MOTOR DAIHATSU x x
2 PT. ASTRA INT’L Tbk - PEUGEOT SALES OPERATION PEUGEOT x
Indonesia’s automakers and
distributors are grouped
under Gaikindo, an acronym
that sounds a bit
Japanese but is in fact acronym
for “Gabungan Industri
Kendaraan Bermotor Indonesia,”
literally translated “the
association of Indonesia’s motor
vehicle industries.”
This association was established
in 1969 as a non-profit organization
and now has 16 assembling
companies, 21 distribution
agents, seven spare parts suppliers
and four companies supplying
the industry’s primary components
as its members.
The purpose of this association
is to advance the automotive
industry and, in the process,
improve the people’s welfare. In
order to realize its vision and mission,
Gaikindo has taken a few
important steps as follows:
• Broaden communication and
disseminate information as
well as views regarding development
of the automotive industry,
including introduction
of new
Photo: www.km77.com
technologies
• Develop programs for trade to
assist member companies
• Export and import activities
involving member companies’
products
• Promotional activities to attract
foreign capital
• Provision of spare parts for
member companies
• Conduct social welfare activities
within the industry
• Establish coordination with
government agencies, and
• Improvement of customer satisfaction
in order to extend the
reach of after-sales services.
Over the past couple of years,
Gaikindo members have reportedly
suffered a lot from the impact
of the global financial crisis.
However, in spite of the difficult
situation domestic demand for
their products has continued to
rise.
Appreciation of the US dollar
and the Japanese yen against the
national currency rupiah, for instance,
brought an extra burden
to component importers because
imports are valued in
those major foreign
currencies.
Sole agents
f e l t
optimistic about their business
prospects. PT Ford Motor Indonesia
(FMI), for instance, announced
a bold plan to develop
its after-sales services to customers.
In January 2009 the company
opened a new superstore dealer
in Bekasi, the sixth in the area,
confirming Fords’ grab of a sizeable
portion of the domestic
market.
In total, Indonesia will see
at least 5,400 luxury cars sold
out before the end of 2010, he
predicted after launching three
Photo: www.gustomobil.wordpress.com
newest models, namely C300
Avantgarde, E300 Avantgrade,
and E36 AMG.
Of the 5,400 luxury cars, MBI
expects to sell 3,700 units representing
a 28.2% increase from
last year’s performance with
2,884 cars delivered to customers.
All through last year MBI controlled
69% of luxury cars’ market
share in Indonesia. Between
January and April 2010 MBI sold
1,170 units or 40% of last year’s
performance.
3 PT. ASTRA NISSAN DIESEL INDONESIA NISSAN DIESEL x x
4 PT. AUTO EURO INDONESIA RENAULT x
5 PT. BMW INDONESIA BMW x x
6 PT. CENTRAL SOLE AGENCY VOLVO x
7 PT. FORD MOTORS INDONESIA FORD x
8 PT. FOTON MOBILINDO FOTON x x
9 PT. GARUDA MATARAM MOTOR AUDI/VW x
10 PT. GAYA MOTOR (ASSEMBLER) DAIHATSU, PEUGEOT, BMW, ISUZU, NISSAN DIESEL, FOTON
11 PT. GM. AUTO WORLD INDONE CHEVROLET x
12 PT. GRANDAUTO DINAMIKA JAGUAR x
13 PT. HINO MOTORS MANUFACTURING INDONESIA HINO x
14 PT. HINO MOTORS SALES INDONESIA HINO x
15 PT. HONDA PROSPECT MOTOR HONDA x x
16 PT. HYUNDAI INDONESIA MOTOR HYUNDAI x x
17 PT. ISUZU ASTRA MOTOR INDONESIA ISUZU x x
18 PT. JAVA MOTORS LAND ROVER x
19 PT. KIA MOBIL INDONESIA KIA x x
20 PT. KRAMA YUDHA RATU MOTORS MITSUBISHI x
21 PT. KRAMA YUDHA TIGA BERLIAN MOTORS MITSUBISHI x x
22 PT. MAZDA MOTOR INDONESIA MAZDA x
23 PT. MERCEDES-BENZ DISTRIBUTION INDONESIA MERCEDES-BENZ x
24 PT. MERCEDES-BENZ INDONESIA MERCEDES-BENZ x
25 PT. MESIN ISUZU INDONESIA ISUZU x
26 PT. MITSUBISHI KRAMA YUDHA MOTOR & MANUFACTURING MITSUBISHI x
27 PT. NISSAN MOTOR DISTRIBUTOR INDONESIA NISSAN x
28 PT. NISSAN MOTOR INDONESIA NISSAN x
29 PT. PROTON EDAR INDONESIA PROTON x
30 PT. SUZUKI INDOMOBIL MOTOR SUZUKI x x
31 PT. TC. SUBARU SUBARU x
32 PT. TJAHJA SAKTI MOTOR BMW x
33 PT. TOYOTA ASTRA MOTOR TOYOTA x
34 PT. TOYOTA MOTOR MANUFACTURING INDONESIA TOYOTA x x
35 PT. TRIJAYA UNION MITSUBISHI x
36 PT. UNICOR PRIMA MOTOR CHERY x x
Note : (S) Sole Agent, (D) Distributor, (M) Manufacturer
NON-GAIKINDO MEMBERS
No. COMPANY BRAND S D M
1 PT. KORINDO MOTORS HYUNDAI (TRUCK & BUS) x
2 PT. KORINDO HEAVY INDUSTRY HYUDAI TRUCK (TRUCK & BUS) x
3 PT. NATIONAL ASSEMBLER SUZUKI PICK UP, KIA, CHERY x
Note : (S) Sole Agent, (D) Distributor, (M) Manufacturer
Sales of Luxury Cars Up,
Dealers Optimistic
about RI’s Purchasing Ability
By Alci Tamesa
Automakers and dealers are confident about their future
business prospects given the fact that Indonesia has over
the past couple of years registered the highest economic
growth rate in ASEAN region.
If you wish to measure the
purchasing ability of Indonesians,
ask PT Mercedes-Benz
Indonesia (MBI). In less than
a month after its launch in June,
at least 20 of its Rp4.7 billion
Mercedes-Benz SLS AMG series
sedans have been sold.
In fact, by the end of June, barely
two weeks after the new entries
came into the local market, 19 of
them were already booked. This
explains why Deputy Marketing
Director of MBI, Yuniadi H
Hartono, says that Indonesians’
purchasing power actually far exceeds
their projected quota.
And there is more to it: if you
wish to get it next year, you need
to place an order today, he says
while extolling the virtues of the
sporty two-seater sedans with
Gullwing doors.
In a related development, president
Director of MBI, Rudi Borgeinheimer,
says that buyers of
SLS AMG cars are from the upper
class segments of society who
won’t mind waiting for months
before getting their dream cars.
And you want to know why they
do so It is because to this segment
of society, luxury cars are
not just a symbol of their status;
they also comprise part of their
luxury and antiques collections.
These people believe that investing
today in such luxury cars is
worthwhile because in the future
the prices of such cars will soar
as it becomes categorized as antiques.
Overall, Mercedes-Benz is optimistic
about being able to reach
its sales target of 3,500 units per
annum. Even during the first
quarter of this year, a total of
997 “Mercy” cars were bought
by Indonesians who intended to
display the luxury side of their
lifestyle. It is this particular development
that motivated MBI
to upgrade its sales target, as the
Indonesian economy has over the
past couple of years performed
quite well.
During the first quarter of
2009 alone there was a 55.2%
increase in the sales of exclusively
luxurious cars which translates
into 642 units. Compare this to
997 units sold out during the
same period this year. This was
apparently the reason MBI released
the E-Class Cabriolet series.
Optimistic about this first
quarter’s development, the company
announced in May this
year that it was going to launch
11 new luxury series. According
to Roland Staehler, the Marketing
Director of MBI, in total they
will launch 21 types of cars but
that 11 to be launched first were
SLS AMG, M-Class Grand Edition,
SLK Grand Edition, E-Class
Cabriolet, two V-Class types, R-
Class facelift, S-Class Coupe, GL
with new diesel engines, G-Class
and Smart Fortwo.
SLS and V-Class series will be
introduced to the general public
during the Indonesia International
Motor Show (IIMS) this
month whereas the Smart series
will hit the streets in November
this year.
News reports say that BMI is
also aiming to offer its articulated
buses to rejuvenate Transjakarta
(busway) which will use gas
(CNG) instead of petrol. It also
plans to offer busses for suspension
Sprinter Midbus dan 20-seat
Sprinter Minibus for transport to
the Jakarta international airport.
Automakers and dealers are
confident about their future business
prospects given the fact that
Indonesia has over the past couple
of years registered the highest
economic growth rate in ASEAN
region.
Staehler says that if political
stability remains well guaranteed
as it is today and economic development
continues uninterrupted,
the automotive industry will
grow even faster than predicted
because Indonesia is a huge
market where the size of the upper
class segment of society is expanding
rapidly.
It is interesting to note that
while the sales of Japanese brands
are decreasing in Indonesia as of
January this year, German-made
cars are fast becoming a source of
preference to Indonesia’s well-todo
families.
Other Brands
If we include all the other
brands, the situation is a bit different.
For instance, during 2009,
the total number of cars sold in
Indonesia reached 488,912 units.
In 2008 a total of 596,166 units
were sold. So in 2009 there was a
decline of 17.9%.
President Director of Toyota
Astra Motor (TAM) Johnny
Darmawan says that in 2010
there will be a 20% increase in
sales to 550,000 units and that
Toyota cars are expected to dominate
the market. He predicts that
there will be more people buying
cars on the retail level than on the
wholesale level (from sole agents
to dealers).
In 2009 Toyota enjoyed 38.9%
of the market share though it
suffered a 8.9% decline in total
sales target, transacting only
190,471 units compared to the
previous year’s transaction figure
of 209,130 units. Yet this is
still much better than the performance
of other sole agents, according
to Kompas newspaper.
Daihatsu was ranked second
last year after having edged Mitsubishi
out. Daihatsu sold 75,169
units in 2009, down by 2.9% of
its performance in 2008. Mitsubushi
came third with 64,334
units sold or a 23.8% decline
from its performance in 2008.
Photo: www.ausmotive.com
Pretty much like Toyota, Honda
is also making huge fortunes
as its market grip strengthened
thanks to increased demand.
Honda has seen a 37% increase
in sales or 5,965 cars during the
first five months of this year, and
as of June the sales made by PT
Honda Prospect Motor reached
28,842 units. The types of Honda
cars that sold well included
Honda Jazz, CR-V, Accord, Civic,
and Honda City.
The strangest thing with Indonesia’s
automotive market is that
while these types of cars suffer a
decline in sales, Indonesians are
buying luxury cars in big numbers.
German-made cars are enjoying
a good ride in the local
market here, thanks to a surge in
public demand for luxury cars.
This is why BMW and Mercedes-Benz
have been harvesting
a great deal of fortune in Indonesia
these days.