Per 18 June 2015, those Indonesian consumers who use a loan from a financial institution to purchase a passenger car need to pay a minimum down payment of 25 percent . It is estimated that around 65 percent of all car purchases in Indonesia are made through a loan. This correlation between domestic car sales and economic growth is clearly visible in the case of Indonesia.

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76% of automotive organizations consider it important to enable a digitally connected supply chain to avoid supply disruptions – but only 17% are able to do so. 79% of automotive organizations consider it important to collect and analyze vehicle data in order to predict outcomes for design, service, safety, and operations – but only 20% are able to do so​. More resilient automotive supply chains are needed to meet demand for EV components and combat car battery and auto chip shortages. When it comes to automotive buying and service experiences, values are something customers won’t negotiate.

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Hyundai Motor Company and Kibar Holding has a joint venture called Hyundai Assan Otomotiv, Hyundai owns 70% and Kibar Holding owns 30%. General Motors, AvtoVAZ, and EBRD have a joint venture called GM-AvtoVAZ, Both GM and AvtoVAZ owns 41.61% and EBRD owns 16.76%. General Motors and UzAvtosanoat have a joint venture called GM Uzbekistan, UzAvtosanoat owns 75% and General Motors owns 25%.

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Other issues that limit car exports are concerns about safety standards and technology. When these LCGC cars were introduced they, generally, had a price tag of around IDR 100 million (approx. USD $7,500) hence being attractive for the country’s large and expanding middle class segment. By early the average price of the LCGC had risen to around IDR 140 million (approx. USD $10,500) per vehicle. With the implementation of the ASEAN Economic Community at the start of 2016, the Indonesian government also aims to make Indonesia the regional hub for the production of LCGCs.

Consumer mobility behavior is changing, leading to up to one out of ten cars sold in 2030 potentially being a shared vehicle and the subsequent rise of a market for fit-for-purpose mobility solutions. After effectively ending the economic slowdown in 2016, the Indonesian economy is expected to show accelerating economic in the years ahead, something that boosts people’s purchasing power as well as consumer confidence. One of the key reasons that explains why Indonesia’s economy ended the slowdown in 2016 was because of improving commodity prices (rising commodity prices tend to boost car sales on the resource-rich islands of Kalimantan and Sumatra). 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.

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