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Due to the easier monetary policy and the end of the economic slowdown in 2016 (GDP growth accelerated to 5.02 percent y/y), Indonesian car sales finally rebounded in 2016. On the long-term, the government wants to turn Indonesia into an independent car manufacturing country that delivers completely built units of which all components are locally-manufactured in Indonesia. Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association , said the region east of Jakarta is selected by many car manufacturers for their production base since a decade ago as the area’s infrastructure is good . He added that it has now become difficult to find large-sized land for new factories due to the influx of many businesses over the past years. Although the relatively new low-cost green car has gained popularity in Indonesia , most Indonesians still prefer to buy the multipurpose vehicle .

Isuzu, Sollers …