EMIS Insight - Indonesia Automotive Sector Report

Automotive
Sector
Indonesia
December 2013
Produced by:
Any redistribution of this information is strictly prohibited.

Copyright 2014 EMIS, all rights reserved.
-1-
Table of Contents
I. Sector Overview
III. Major Players
1.
2.
3.
4.
5.
6.
7.
8.
1.
2.
3.
4.
Sector Highlights
Economic Importance
Sector Forecast
CPI and Consumption
Employment and Wages
Market Population by Major Cities
Government Regulations and Tariffs
Investment Risks
II. Automotive Production and Sales

1.
2.
3.
4.
5.
6.
7.
8.
Automotive Production Highlights

Automotive Production by Type
ASEAN Regional Production Data
Automotive Sales Highlights
Automotive Sales by Type
ASEAN Regional Sales Data
Foreign Trade
Car and Motorcycle Sales by Brand

-2-
Market Positioning Overview

PT Astra International Tbk (ASII)
Indomobil Sukses Internasional Tbk (IMAS)
Industry Expansion Indonesia
I. Sector Overview

-3-
Sector Highlights
Economic situation
Indonesia is the largest economy in South East Asia and industry accounts for the largest share of the country's GDP (46.5% of total GDP). The
inflation rate from 2009 to June 2013 was stable ranging between 4.45% and 5.90%, but spiked to 8.1% in July 2013 mainly driven by rising food
and transportation prices, coinciding with peaking demand during the Ramadan. The government raised the subsidised fuel prices in June 2013,
with the price of premium fuel rising by 44% to IDR 6,500, while the price of diesel was increased by 22% to IDR 5,500. The Bank of Indonesia
projects that the inflation rate will return back to normal levels by Q1 2014, but meanwhile it has been steadily raising the base interest to curb it,
thus directly restricting the availability of cheap financing for car loans.
Production
The automotive sector is one of the most robust industries in Indonesia and the country ranks 15th in world in terms of auto sales. The industry has
enjoyed steady domestic sales growth averaging 15% since 2010 as is projected to continue to grow until the end of the decade. Manufacturers of
both vehicles and components are building new production facilities to meet the burgeoning local and regional demand. The hike in fuel prices did
not repel buyers, but re-directed them towards the low-cost green car (LCGC) segment. The tax incentives that the government provides to LCGC
producers not only make these cars more affordable but they also encourage producers to expand their output and possibly turn Indonesia into a
regional production hub due to low wages and the availability of cheap land.
Sales
Car penetration in Indonesia is estimated at 40 cars per thousand people in a country whose population tops 240 million. Indonesia has a young
demographic profile with 60.8% of the population aged below 35 years as of 2011. People aged 30-34 had the highest average gross income in Indonesia,
at IDR 38.7mn (USD 4,199) in 2011, compared to the national average gross income of IDR 31.5mn (USD 3,422). These factors overcome the negative
effects of inflation, rising interest rates and depreciating rupiah and underpins car sales. Japanese car brands generated over 90% of the sales in 2013 with
the top three car makers being Toyota and Daihatsu (both distributed by local conglomerate Astra) and Mitsubishi.

-4-
Economic Importance
Economic Importance
2008
2009
2010
2011
2012
510.2
539.6
709.2
846.3
878.0
4,948,688.4
5,606,203.4
6,446,851.9
7,422,781.2
8,241,864.3
329,911.7
346,403.0
389,600.1
426,233.7
465,537.4
2,082,456.1
2,178,850.4
2,314,458.8
2,464,676.5
2,618,139.2
177,178.3
172,085.1
189,947.9
202,892.0
216,970.0
GNI per capita, PPP (current

international USD)
3.75
3.91
4.18
4.48
4.81
GNI per capita, Atlas method

(current USD)
1,950.0
2,160.0
2,500.0
2,930.0
3,420.0
Inflation, consumer prices (annual

%)
9.8
6.4
5.1
5.4
4.3
Current account balance

(% of GDP)
0.0
2.0
0.7
0.2
-2.8
9.318
4.877
13.771
19.241
19.853
GDP in current prices (USD bn)

GDP in current prices, IDR bn
GDP in current prices:
Manufacturing of transport
equipment machinery and
apparatus, IDR bn
GDP in constant prices, IDR bn
GDP in constant prices:
Manufacturing of transport
equipment machinery and
apparatus, IDR bn
Foreign direct investment,

Net
inflows (BoP, current USD bn)
Source: World Bank, Bank Indonesia
-5-
Sector Forecast
Comments
Gaikindo forecast
Vehicle sales in Indonesia are expected to grow by 5%-10% to about 1.3

million in 2014, according to a forecast by the Association of Indonesian
Automotive Manufacturers (Gaikindo). The depreciating local currency,
the expected rise in Toyota prices and the anti-inflationary measure in
the form of a rising benchmark interest rate (an obstacle before 65% of
car buyers, who borrow financing from banks) are restrict higher market
growth, a Gaikindo official said. Another significant trend is the state
support for low cost green cars (LCGC), which represented 3% of the car
sales in Jan-Nov 2013 and 15% in November alone. The government will
also indirectly influence the market by offering subsidised fuel. The
projected spending on this programme is between IDR 190tn and IDR
220tn.
1,116,230
764,710
607,805
486,061
2008
2009
2010
2011
Sales of vehicles
Exports of vehicles
Production (IDR bn)
1,207,833
2020
2013e
2014f
2025
1,945,307
2015f
2016f
2017f
3,132,936
1,208.51
1,946,318
3,134,454
179.96
289,827
466.77
130.451
210.093
338.357
Production of passenger cars
925,283
1,008,559 1,104,372
1,207,078
Sales pf passenger cars
926,743
1,019,418 1,121,359
1,222,282
Motorcycle production (mn

CBUs)
Motorcycle sales (mn CBUs)
Source: Gaikindo, Indomobil, BMI

2012
BMI forecast
2014f
Production of vehicles
1,300,000
894,164
Indomobil forecast
2015
1,226,199
-6-
8.03
8.753
9.628
10.687
7.938
8.652
9.517
10.564
CPI and Consumption

Comments
Inflation rate (2007=100)

145
140
The inflation rate in the country remained stable fluctuating between

4.45% and 5.90% in the period 2009 to June 2013.
In July 2013, the inflation rate spiked from 5.9% to 8.1% largely driven
by rising food and transportation prices, coinciding with peaking demand
during the Ramadan. In June 2013, the government raised the
subsidised fuel price, with the price of premium fuel increasing going up
by 44% to IDR 6,500, while the price of diesel was increased by 22% to
IDR 5,500. The Bank of Indonesia projects that the inflation rate will
return back to normal levels by Q1 2014.
135
130
125
120
115
110
Average monthly expenditure per capita

593,664
15,789
15,282
25,581
17,953
21,406
494,845
13,833
430,065
2007
2008
2009
2010
2011
2012
2013
Total
350
300
250
200
150
100
50
0
703,561
12,847
353,421
386,370
633,269
Retail sales index (Oct 2000=100)
Retail sales index
Vehicles and repair
Source: Statistics Indonesia, Bank Indonesia, CEIC

-7-
Motor vehicles and spare parts
Employment and Wages

Auto workforce
Type of plant
# Of plants
Workers per plant
Total workers
20
950
19,000
Authorized outlet
11,000
77,000
Non-authorized
outlet
33,000
231,500
Lvl 1 component
industries
150
280
42,000
Lvl 2 component
industries
350
32
11,000
Assembly
Most of the workers in the automotive manufacturing

sector are 'non-skilled' labor and are paid minimum wage.
The average working week is 5.5 days and the majority of
the workers are union members. Most of the plants are
based on the island of Java and located in the suburbs of
the capital Jakarta.
In 2013, the minimum wage was increased nationwide by

19% to 48.5% depending on the province (Jakarta saw
some of the larger increases). The minimum wage for
auto workers was raised by some 29% to USD 220 per
month. The unions are lobbying for a 20% wage increase
in 2014.
The launch of the LCGC initiative is expected to create

70,000 jobs 30,000 in auto manufacturing and 40,000 in
support activities.
* Based on2010 - this number has risen with new plants and Industry
expansion
Source: Ministry of Manpower and Transmigration, Indomobil

-8-
Market Population by Major Cities

Population by City and Province
Main cities
Jakarta
Surabaya
Bandung
Bekasi
City population
9,607,787
2,765,487
2,394,873
2,334,871
Province population
9,607,787
37,476,757
43,053,732
2,630,401
Admin units / Province

Provinsi DKI Jakarta
Provinsi Jawa Timur
Provinsi Jawa Barat
Kabupaten Bekasi
Island
Java
Java East
Java West
Java
Area (sq.km.)
664.01
47,799.75
35,377.76
1,484.37
Medan
2,097,610
Tangerang
Depok
Semarang
1,798,601
1,738,570
1,555,984
12,982,204
1,798,601
1,738,570
32,382,657
Provinsi Sumatera Utara

Provinsi Banten
Kota Depok
Provinsi Jawa Tengah
Sumatera North
Java
Java
Java Central
72,981.23
184.00
200.29
32,800.69
Palembang
1,455,284
7,450,394
Provinsi Sumatera Selatan
Sumatera South
91,592.43
Makassar
1,338,663
Bogor
950,334
46,717.48
950.334
Provinsi Sulawesi Selatan

Kota Bogor
Sulawesi South
Java
8,034,776
21.56
Padang
833,562
4,846,909
Provinsi Sumatera Barat
Sumatera West
42,012.89
Comments
The above information is based on a census conducted in May 2010. When assessing the potential market, making assumptions based on the city
population can be misleading as large segments of the population live outside of city limits, representing a lucrative market for automobiles.
Half of the Indonesian population is under 30 years of age. Government projections show an increase in per capita income of USD 10,000 by 2020.
Source: Statistics Indonesia

-9-
Government Regulations and Tariffs

Import duties and luxury tax, %
CBU
LCGC regulations July 2013
Import duty
CKD
IKD
2010 2011 2010 2011 2010 2011
Sedan
4x2 type
4x4 type
Bus
Pick up/
Truck
Double cabin
4x2 / 4x4
7.5
7.5
7.5
7.5
7.5
7.5
0
0
7.5
0
0
Luxury
tax
2011
CC<1.500(G/D)
1.501 < CC <3.000 (G)/2.500 (D)
CC > 3.001 (G)/2.500 (D)
CC<1,500(G/D)
1.501 < CC <2.500 (G/D)
2.501 < CC <3.000 (G)
CC > 3.001 (G)/2.500 (D)
CC<1.500(G/D)
1.501 < CC <3.000 (G)/2.500 (D)
CC > 3.001 (G)/2.500 (D)
GVW 5 - 24 Ton (G/D)
GVW > 24Ton (G/D)
GVW < 5 Ton (G/D)
GVW > 24Ton (G/D)
50
50
50
45
45
45
45
45
45
45
40
10
45
40
10
40
40
40
40
40
40
40
40
40
40
40
10
40
40
10
15
15
15
15
15
15
15
15
15
15
15
5
15
15
5
10
10
10
10
10
10
10
10
10
10
10
5
10
10
5
7.5
7.5
7.5
7.5
7.5
7.5
0
0
7.5
0
0
30
40
75
10
20
40
75
30
40
75
10
10
0
0
0
GVW < 5 Ton (G/D)
45
40
15
10 7.5 7.5
20
Low Cost Green Car Models

Astra Toyota Agya
Astra Daihatsu Ayla
Honda Brio Satya
Datsun GO+
Datsun GO
Suzuki Karimun Wagon R. Agya-Ayla
Source: Ministry of Finance
- 10 -
The government has provided tax incentives on luxury goods

sales for low cost and environmentally friendly automobiles in
the low cost green car (LCGC) and low carbon emission
(LCE) programs. The tax incentive provision is outlined in
government regulation 41 that was enacted on May 23,
2013.With the new regulation, automobile manufacturers can
obtain luxury goods sales tax incentive of 25% to 100% of
the value that should be paid. (Astra is targeting 10,000 cars
per month).
For a car that uses gasoline, the engine size must range
between 980 cc and 1,200 cc. For cars that use diesel, the
engine must not be larger than 1,500 cc.
The car must have an ability to run for 20 kilometers for each
liter of fuel it consumes (gasoline and diesel).
The car must use RON92 gasoline or CN 51 diesel, which
are high-octane fuels. The off-road sale price of the car must
be capped at a maximum of IDR 100mn.
The government also requires vehicles to come with
standard safety features, such as airbags.
Firstly, the certified results of fuel testing and visual
evidence that the branding, logo and model reflect Indonesia.
Secondly,The companies must then attach the proof of their
realized investment, including the plan for using local
components. Thirdly, companies must attach a letter that
specifies the selling price of the car. Lastly, the terms and
conditions must be verified by an independent surveyor.
Investment Risks
Political Risks
Foreign Exchange Reserves

.
In 2014, Indonesia will be holding presidential elections. The incumbent

president, Susilo Bambang Yudhoyono, will be completing his second
five-year term. His administration initiated many reforms in Indonesia
and worked to create a more investor friendly environment for the local
industry. There is no guarantee that a new administration will continue
these policies. The 1st round of the presidential elections will be held in
July.
Indonesia's foreign-exchange reserves fell to a two-year low in June

2013 as Bank Indonesia intervened to support the rupiah, adding
pressure on the Central Bank to raise interest rates.
The country's reserves fell to USD 98.1 billion in June 2013 from USD
105.15 billion in May at their lowest level since January 2011.
The currency has fallen about 4% this year, breaching the 10,000 level
and hitting its weakest point since September 2009.
The Presidential elections of 2014, high inflation

rate, rising labor costs, declining foreign reserves
and currency depreciation remain some of the
biggest risks facing Indonesia in 2014.
In July 2013, Bank Indonesia raised interest rates to 6.5% and set the
overnight deposit facility rate (FASBI) at 4.75%. In July, the inflation
rate spiked from 5.9% to 8.1% and the bank took aggressive measures
to reduce the inflation rate.
In 2013, the minimum wage was increased between 19.1% and 48.86%
depending on the region, with the sharpest hikes registered in Jakarta
and East Kalimantan. The local unions are lobbying for a 20% increase
in 2014, a demand which may be granted considering the election year.
Inflation
Rising Labor
Costs
Source: Bank Indonesia

- 11 -
II. Automotive Production and Sales

- 12 -
Automotive Production Highlights
Importance
The automotive sector is one of the most robust industries in Indonesia. The industry has enjoyed steady domestic sales
growth averaging 15% since 2010 as is projected to continue to grow until the end of the decade. Manufacturers of both
vehicles and components are building new production facilities to meet the burgeoning local and regional demand. The hike in
fuel prices did not repel buyers, but re-directed them towards the LCGC segment. However, industry growth is affected by the
increase of the base interest rate that makes car loans less attractive.
Annual car sales will double to 2 million units by 2018 and that the proportion of exports will rise from about 10% of total
production at the moment to 20-30% in 2018, according to a projection of Budi Darmadi, a senior industry ministry official.
LCGC to
drive market
upwards
The introduction of the low cost green cars (LCGC) in September 2013 is the most significant new development in Indonesia's
automotive industry in terms of both production and sales. The tax incentives that the government provides to LCGC producers
not only makes these cars more affordable but also encourages producers to expand their output.
New
investments
and jobs
The government support for the LCGC subsector is expected to lure new investments and provide new jobs. According to
Coordinating Minister for Economic Affairs, Hatta Rajasa, the initiative has attracted USD 3bn in the automotive industry and
another USD 3.5bn in the production of auto components. This expansion will also create 70,000 jobs some 30,000 in
manufacturing and 40,000 in sales, marketing, autoshops and other related subsectors. The market structure will not change
dramatically, as the market leaders Toyota and Daihatsu have already started manufacturing LCGC models prior to the launch
of the initiative, noted LMC Automotive analyst Ammar Master.

- 13 -
Automotive Production by Type

Automotive production by type
Sedan
4X2 type
4X4 type
Bus
Pick up/Truck
Low cost green car (LCGC) and

low emission carbon cars (LEC)
CC<1,500(G/D)
1,501 < CC <3,000 (G)/2,500 (D)
CC > 3,001 (G)/2,500 (D)
Subtotal
CC<1,500(G/D)
1,501 < CC <2,500 (G/D)
2,501 < CC <3,000 (G)
CC > 3,001 (G)/2,500 (D)
Subtotal
CC<1,500(G/D)
1,501 < CC <3,000 (G)/2,500 (D)
CC > 3,001 (G)/2,500 (D)
Subtotal
GVW 10 - 24 Ton (G/D)
GVW > 24 Ton (G/D)
Subtotal
GVW < 5 Ton (G/D)
GVW 10 - 24Ton (G/D)
GVW > 24Ton (G/D)
Subtotal
CC1,200 (G)
2008
2009
2010
2011
2012
2,681
2,991
251
5,923
285,125
106,937
23,935
415,997
5,236
4,267
9,503
1,788
1,168
2,956
84,917
66,120
5,162
10,050
166,249
77
2,084
206
2,367
264,447
71,600
10,193
346,245
2,978
582
3,560
1,038
1,290
2,328
54,550
45,487
4,432
5,874
110,316
3,900
181
4,081
358,838
100,491
17,923
477,252
13,029
2,162
15,191
2,076
2,030
4,106
101,648
80,809
6,608
12,813
201,878
208
2,863
160
3,231
418,118
91,601
21,043
530,762
23,389
4,481
27,870
2,431
1,711
4,142
151,421
97,471
8,208
14,843
271,943
673
4,076
120
4,869
541,694
114,982
36,745
693,421
37,414
7,797
45,211
3,061
2,238
5,299
169,747
113,200
12,675
21,135
316,757
CC1,500 (D)
Subtotal
Total
600,628
464,816
Source: Gaikindo
- 14 -
702,508
873,948
1,065,557
Jan-Nov
2013
Share in
2012 (%)
share in JanNov 2013 (%)
367
3,930
90
4,387
626,613
132,380
27,327
786,320
15,077
8,248
23,325
2,269
2,063
4,332
131,170
99,722
8,970
17,870
257,732
37,459
0.1%
0.4%
0.0%
0.5%
50.8%
10.8%
3.4%
0.0%
65.1%
0.0%
3.5%
0.7%
4.2%
0.3%
0.2%
0.0%
0.5%
15.9%
10.6%
1.2%
2.0%
29.7%
-
0.0%
0.4%
0.0%
0.4%
56.3%
11.9%
2.5%
0.0%
70.6%
0.0%
1.4%
0.7%
2.0%
0.2%
0.2%
0.0%
0.0%
11.8%
9.0%
0.8%
1.6%
23.1%
3.3%
0.0%
37,459
1,113,555
3.3%
ASEAN Regional Production Data

Motorcycle and scooter production
Vehicle production
Jan-Oct 2013
Indonesia
2012
Jan-Oct 2013
Malaysia
2012
Jan-Oct 2013
Philippines
2012
Jan-Oct 2013
Thailand
2012
Jan-Oct 2013
Vietnam
2012
Jan-Oct 2013
Total
2012
Motor vehicles
1,001,682
1,065,557
494,417
569,620
66,566
75,413
2,115,375
2,453,717
73,653
73,673
3,751,693
4,237,980
Passenger
Commercial
743,501
322,056
509,621
59,999
26,340
49,073
957,623
1,496,094
41,488
32,185
2,278,573
1,959,407
2012
Jan-Oct 2013
7,079,721
6,539,594
Malaysia
543,088
463,452
Philippines
588,292
610,985
2,606,161
1,910,287
10,817,262
9,524,318
Indonesia
Thailand
Total
Motorcycle and scooter production in Indonesia

8,006,293
7,395,390
6,264,265
2008
7,079,721
5,884,021
2009
2010
2011
Source: ASEAN
- 15 -
2012
6,539,594
Jan-Oct 2013
Automotive Sales Highlights
Sales
potential
Indonesia has a young demographic profile with 60.8% of the population aged below 35 years as of 2011. People aged 30-34
had the highest average gross income in Indonesia, IDR 38.7mn (USD 4,199) in 2011, compared to the national average gross
income of IDR 31.5mn (USD 3,422). High earners in this age group will likely buy their first cars.
In 2012, Indonesia's central bank tried to limit the growth of car sales by introducing a new rule that raised the required
minimum down payment for the purchase of automobiles from 10% to 25% of the price for commercial cars, and to 30% for
passenger cars. This move slowed down car sales as around 65% of car purchases in Indonesia are made with the help of
loans.
Astra
dominance
Japanese car brands accounted for over 90% of the sales in 2013. Toyota Motor Corp. dominates both in terms of numbers
and as market presence among car dealerships. Currently, together with Daihatsu, it runs 450 dealers and has a 54% share of
the market. Another major global player, General Motors, has only 34 dealers and a 0.7% market share on the Indonesian
market. Toyota and Daihatsu vehicles are sold by joint ventures between Indonesian conglomerate PT Astra International and
the two Japanese car makers. Mitsubishi, the country's third most popular car brand, is distributed by Krama Yudha Tiga
Berlian Motors.
LCGC impact
The affordable price cap on LCGC cars is allowing a growing number of Indonesians to become car owners. Although analysts
are optimistic that Indonesia's middle class will expand, its growth is currently hampered by high inflation, rise in subsidised fuel
prices, depreciating local currency and soaring prices of imported goods. The sector is now underpinned by the sales of the six
available LCGC car models and their number will increase to nine in 2014.

- 16 -
Automotive Sales by Type

Automotive production by type
CC<1,500(G/D)
1,501 < CC <3,000 (G)/2,500
(D)
Sedan
CC > 3,001 (G)/2,500 (D)
Subtotal
CC<1,500(G/D)
1,501 < CC <2,500 (G/D)
2,501 < CC <3,000 (G)
4X2 type
CC > 3,001 (G)/2,500 (D)
Subtotal
CC<1,500(G/D)
1,501 < CC <3,000 (G)/2,500
(D)
4X4 type
CC > 3,001 (G)/2,500 (D)
Subtotal
GVW 10 - 24 Ton (G/D)
Bus
GVW > 24 Ton (G/D)
Subtotal
GVW < 5 Ton (G/D)
Pick up/Truck
GVW 10 - 24Ton (G/D)
GVW > 24Ton (G/D)
Subtotal
Double cabin 4x2 / 4x4
GVW < 5 Ton (G/D)
Low cost green car (LCGC) CC1,200 (G)
and low emission carbon cars CC1,500 (D)
(LEC)
Subtotal
Total
2008
2009
2010
2011
2012
18,753
11,779
18,355
14,236
18,998
Jan-Nov
2013
18,387
15,284
10,068
14,080
11,013
14,754
14,027
1.3%
1.2%
263
34,300
279,051
105,822
2,702
1,215
388,790
-
253
22,100
257,507
74,652
2,214
680
335,053
-
693
33,128
389,712
111,874
2,801
123
504,510
-
492
25,741
452,669
113,252
3,478
369
569,768
-
469
34,221
583,107
152,282
3,130
649
739,168
-
350
32,764
593,269
138,400
2,230
332
734,231
-
0.0%
3.1%
52.2%
13.6%
0.3%
0.1%
66.2%
0.0%
0.0%
2.9%
52.4%
12.2%
0.2%
0.0%
64.9%
0.0%
1,707
1,653
3,070
3,847
5,653
4,482
0.5%
0.4%
470
2,177
1,651
1,210
2,861
80,099
66,258
5,302
10,088
161,747
13,899
561
2,214
1,167
1,302
2,469
55,373
45,760
4,582
6,028
111,743
9,969
767
3,837
2,058
2,119
4,177
104,263
80,933
6,632
12,826
204,654
14,404
1,674
5,521
2,468
1,385
3,853
150,254
96,434
7,890
15,627
270,205
17,815
1,743
7,396
2,191
2,281
4,472
168,354
109,733
12,756
20,766
311,609
19,364
0.2%
0.7%
0.2%
0.2%
0.0%
0.4%
15.1%
9.8%
1.1%
1.9%
27.9%
1.7%
0.1%
0.5%
0.1%
0.2%
0.0%
0.3%
15.3%
8.9%
0.8%
1.6%
26.7%
1.5%
3.3%
0.0%
3.3%
603,774
483,548
764,710
894,164
1,116,230
1,436
5,918
1,511
2,000
3,511
173,240
101,243
9,139
18,393
302,015
16,819
36,916
36,916
1,132,174
Source: Gaikindo
- 17 -
share in
share in Jan2012 (%)
Nov 2013 (%)
1.7%
1.6%
ASEAN Regional Sales Data

Motorcycle and scooter sales
Vehicle sales
Brunei
Indonesia
Malaysia
Philippines
Singapore
Thailand
Vietnam
Total
Jan-Oct 2013
2012
Jan-Oct 2013
2012
Jan-Oct 2013
2012
Jan-Oct 2013
2012
Jan-Oct 2013
2012
Jan-Oct 2013
2012
Jan-Oct 2013
2012
Jan-Oct 2013
2012
Motor vehicles
15,694
18,634
1,020,389
1,116,212
543,048
627,753
148,181
156,654
27,954
37,247
1,123,268
1,436,335
77,723
80,453
2,956,257
3,473,288
Passenger
Commercial
2012
Jan-Oct 2013
7,141,586
6,530,079
Malaysia
537,753
460,766
108,326
Philippines
702,599
608,199
32,724
4,523
Singapore
9,923
9,634
694,234
742,101
2,130,067
1,738,996
43,692
36,761
10,521,928
9,347,674
2,169,788
1,303,500
17,854
780
780,767
335,445
552,189
75,564
48,328
Indonesia
Thailand
Total
Motorcycle and scooter sales in Indonesia

8,043,535
7,398,644
6,280,799
2008
7,141,586
5,881,777
2009
2010
2011
Source: ASEAN
- 18 -
2012
6,530,079
Jan-Oct 2013
Foreign Trade
Exports CBU, units
Exports CKD, units

173,368
103,710
155,711
100,122
97,615
2012
Jan-Nov
2013
83,709
107,932
100,982
85,796
53,140
55,624
2009
2010
56,669
2008
2009
2010
2011
2012
Jan-Nov
2013
2008
Exports components, units
2011
Imports CBU, units
55,504,758
146,765
48,170,428
125,873
72,646
232,648
353,950
2008
2009
2010
2011
2012
Jan-Nov
2013
2008
Source: Gaikindo
76,173
2010
2011
32,678
12,081,911
311,066
76,520
- 19 -
2009
2012
Jan-Nov
2013
Car and Motorcycle Sales by Brand

Car sales by brand
311,136
Toyota
Suzuki
94,569
126,577
148,967
Mitsubishi
134,416
148,918
145,371
Honda
45,416
69,320
86,817
Nissan
56,137
67,143
56,341
4,088,888
Kawasaki
TVS
Kanzen
188
333
264
Jan-Nov 2013
493,095
418,940
95,108
123,431
13,994
9,344
382
n/a
2011
Source: Jakarta Post, Indonesian Motorcycle Industry Association

2,423,854
Suzuki
3,045
2,925
1,809
2012
3,136,073
Yamaha
28,746
33,165
29,016
Isuzu
2011
4,273,888
Honda
80,967
99,081
92,324
Others
Peugeot
406,026
400,026
139,544
162,742
171,195
Daihatsu
UD Trucks
Motorcycle sales by brand
- 20 -
2012
III. Major Players

- 21 -
Market Positioning Overview
Operating in
Indonesia
The auto industry in Indonesia is dominated by large conglomerates that produce: CBUs (Completely Built Units), CKDs (Completely
Knocked Down Kits) and components/parts. These combines own or joint venture: assembly plants, parts manufacturers, logistic
companies, dealerships, car rental agencies and financing facilities for end-users. Japanese companies have been doing business in
Indonesia for decades and understand the complexities on the ground and it is no surprise that they hold around 90% of the domestic
car and truck sales in Indonesia.
ASTRA
PT Astra International Tbk is the largest and oldest auto conglomerate in Indonesia and accounts for 50-53% of all auto sales in the
country. Astra holds the exclusive distribution rights to Toyota (Indonesia's largest selling brand), Peugeot, Daihatsu, BMW, Isuzu, and
Nissan Diesel as well as the exclusive manufacturing and distribution rights for Honda motorcycles. The company is controlled by
Singapore-listed Jardine Cycle & Carriage Ltd.
Indombil
PT Indomobil Sukses Internasional Tbk is the second largest automotive retailer in the country behind Astra. Its primary business
includes vehicle sales distribution, after-sales service and vehicle-ownership financing. In December 2012, Singapore-based
investment holding company Gallant Venture Ltd. bought a 52% stake in Indomobil Sukses for USD 809.3mn to tap growth in
Southeast Asia's largest economy.
Source: Company annual reports

- 22 -
PT Astra International Tbk (ASII)

Financial performance, IDR bn
Highlights
PT Astra International Tbk is the largest and oldest
automotive conglomerate in Indonesia. The company
was established in 1957 as a garage-based trading
company in Jakarta. After 55 years in operation, Astra
has developed into one of the largest national
companies which is supported by 185,580 employees
in 170 companies, including subsidiaries, associates,
and jointly controlled entities.
188,053
162,564
129,991
2008
2009
2010
Revenues
2011
PT Toyota-Astra Motor (TAM) is the sole agent for

sales in Indonesia of all vehicles carrying the Toyota
brand and Daihatsu, Isuzu UD Trucks, Peugeot, BMW,
and Lexus.
22,460
14,366
21,348
98,526
10,040
9,191
97,064
In 1990, Astra listed its shares on the Indonesia Stock

Exchange. The market capitalization of Astra at the
end of 2012 was IDR 307.7 trillion. Astra operates in
six business segments: Automotive, Financial
Services, Heavy Equipment and Mining, Agribusiness,
Infrastructure and Logistics.
Astra operates assembly plants, parts factories,

dealerships and finance units and dominates the
Indonesian auto market with over 50% of all national
sales.
2012
Net Profit
Source: Company data

- 23 -
Indomobil Sukses Internasional Tbk (IMAS)

Financial performance, IDR bn
Highlights
PT Indomobil Sukses Internasional Tbk is an
integrated automotive business group, implementing a
one-stop service concept with a number of
subsidiaries being in the forefront of the Indonesian
automotive industry. The company was established in
1976 as PT Indomobil Investment Corporation and
in1997 merged with PT Indomulti Inti Industri Tbk and
changed its name to PT Indomobil Sukses
Internasional Tbk.
The primary business line of the Indomobil and its
subsidiaries encompass brand holding sole agent,
vehicle sales distribution, after sales service, vehicle
ownership financing, spare part distribution under
IndoParts brand, vehicle assembly, automotive
parts/component manufacturing, car rental services,
and other related supporting services.
The company manages well-known brands of
international reputation, namely: Audi, Foton, Hino,
Kalmar, Mack Trucks, Manitou, Nissan, Renault,
Renault Trucks, Suzuki, Volkswagen, Volvo
Construction Equipment and Volvo Trucks.
On 7 June 2012, the Indomobil executed a stock split;
splitting the nominal value from IDR 500.00 per share
became IDR 250.00 per share. Stock split ratio was
1:2.
19,781
15,775
10,935
8,197
2008
2009
2010
Revenues
2011
885
1,066
537
11
23
6,940
2012
Net Profit
Source: Company data

- 24 -
Industry Expansion Indonesia

Daihatsu JV with Astra
Daihatsu Motor, one of Japans biggest car makers,
announced its plans to expand its car engine
manufacturing plant in Indonesia. The firm will
extend its production line for passenger car engines
at its Astra Daihatsu Motor Indonesian (ADM)
subsidiary where the annual production capacity is
estimated at 200,000 engines. The expansion is an
attempt to further boost Daihatsus operations in
Indonesia, its key international business location.
The firms move follows recent expansion plans by
rivals including Toyota Motor and Suzuki. ADM,
which is 61.75% owned by Japans Daihatsu Motor,
31.87% by Astra International and 6.38% by Toyota
Tsusho Corporation, currently employs 11,000
workers at its Karawang manufacturing plant located
about 75 km east of Jakarta. Some of ADMs brands
include Sirion, Terios and Xenia.
GM Launched their new Chevrolet Spin MPV during

an official launch of the General Motors plant in
Bekasi, on the outskirts of Jakarta on 19 February
2013. In June, GM sold 1,294 Spin vans, powering
the company to sell a total of 1,761 cars that month.
While still small, the volume was respectable
compared to the companys annual volume of 5,277
cars last year.
The GM plant, which suspended operations in 2005,
will have potential capacity to produce 40,000 Spin
vans a year .Indonesian consumers prefer simple
no-frill vans, and the Spin competes against similarly
packaged and priced cars such as the Toyota
Avanza and Nissan Livina.
GM began shipping some of its Indonesia-made
Spin cars to Thailand this month and expects to start
exporting them to the Philippines next month.
Indias Tata Motors Enters Indonesia

.
Indonesia along with Brazil, Russia, India, South Africa

and China, has become one of the hottest emerging
markets for car makers.
The McKinsey Global Institute said an additional 90
million people will join Indonesias consumer class by
2030. By then the country could overtake Britain as the
seventh-largest economy, according to a Reuters report
in early July.
GM Launches new MPV
Suzuki Motor Corp is ready to make a USD

1 billion investment for the development of
vehicles and automotive components
factory in Bekasi, West Java. The factory
will have a capacity of 150,000 units per
year and will manufacture low cost cars
and green cars.
The factorys construction process 25%
complete. Indomobil is the sole agent of
several automotive brands, such as
Suzuki, Nissan, Hino, and others.
Suzuki Invests USD $1

Billion in new factory
Source: Reuters Jakarta Globe Jakarta Post

Tata Motors India plans to make

Indonesia a hub to export vehicles to
Southeast Asia.
Over the next two months, the
company plans to open as many as
seven dealerships and increase that
number to 15 by March. Tata Motors
expects to sell enough vehicles in
Indonesia in three to four years to
justify starting an assembly line.
- 25 -
Contact:
Corporate Headquarters
Nestor House
Playhouse Yard
London EC4V 5EX
UK
Voice: +44 207 779 8471
Fax: +44 207 779 8224
Asia Headquarters
Eucharistic Congress Bldg. No.
III
4th Floor, 5 Convent Street
Mumbai 400 001
India
Voice: +91 22 22881123
Fax: +91 22 22881137
Americas Headquarters
225 Park Avenue South
New York, New York 10003
US
Voice: +1 212 610 2900
Fax: +1 212 610 2950
Disclaimer:
The material is based on sources which we believe are reliable, but no warranty, either expressed or implied, is provided in relation to the accuracy or completeness
of the information. The views expressed are our best judgment as of the date of issue and are subject to change without notice. EMIS and Euromoney Institutional
Investor PLC take no responsibility for decisions made on the basis of these opinions.
Any redistribution of this information is strictly prohibited. Copyright 2014 EMIS, all rights reserved. A Euromoney Institutional Investor company.
About EMIS Insight
EMIS Insight is a unit of EMIS that produces proprietary strategic research and analysis. The service features market overviews, industry trend analysis, legislation
and profiles of the leading sector companies provided by locally-based analysts.
About EMIS
Founded in 1994, EMIS (formerly known as ISI Emerging Markets) was acquired by Euromoney Institutional Investor PLC in 1999. EMIS works from over 15 offices
around the world to deliver electronic information products, by subscription, to institutional customers globally. EMIS provides hard-to-get information covering more
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organizations, and others.

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Automotive

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III. Major Players

II. Automotive Production and Sales

Automotive Production Highlights

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Market Positioning Overview

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GNI per capita, PPP (current

GNI per capita, Atlas method

Inflation, consumer prices (annual

Current account balance

GDP in current prices (USD bn)

Foreign direct investment,

Vehicle sales in Indonesia are expected to grow by 5%-10% to about 1.3

Production of passenger cars

Sales pf passenger cars

Motorcycle production (mn

Source: Gaikindo, Indomobil, BMI

CPI and Consumption

Inflation rate (2007=100)

The inflation rate in the country remained stable fluctuating between

Average monthly expenditure per capita

Retail sales index (Oct 2000=100)

Retail sales index

Vehicles and repair

Source: Statistics Indonesia, Bank Indonesia, CEIC

Motor vehicles and spare parts

Employment and Wages

Workers per plant

Most of the workers in the automotive manufacturing

In 2013, the minimum wage was increased nationwide by

The launch of the LCGC initiative is expected to create

Source: Ministry of Manpower and Transmigration, Indomobil

Market Population by Major Cities

Admin units / Province

Provinsi Sumatera Utara

Provinsi Sumatera Selatan

Provinsi Sulawesi Selatan

Provinsi Sumatera Barat

Source: Statistics Indonesia

Government Regulations and Tariffs

LCGC regulations July 2013

2010 2011 2010 2011 2010 2011

GVW < 5 Ton (G/D)

Low Cost Green Car Models

The government has provided tax incentives on luxury goods

Foreign Exchange Reserves

In 2014, Indonesia will be holding presidential elections. The incumbent

Indonesia's foreign-exchange reserves fell to a two-year low in June

The Presidential elections of 2014, high inflation

Source: Bank Indonesia

II. Automotive Production and Sales

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Automotive Production Highlights

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Automotive Production by Type

Low cost green car (LCGC) and

share in JanNov 2013 (%)

ASEAN Regional Production Data

Motorcycle and scooter production in Indonesia

Automotive Sales Highlights

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