Blogger: Aage Hansen, President Director Deutsche Messe Venue Operations, Indonesia Convention Exhibition (ICE)

Indonesia is one of the countries in ASEAN which has great economy impact and massive industrial growth. There are currently over 252 million people in Indonesia, and this country is developing rapidly in many sectors, one of it is the automotive sector.

Indonesia is the second-largest car manufacturer in ASEAN after Thailand. And it is predicted that within the next decade, Indonesia will take over Thailand’s position as the major car manufacturer in ASEAN region.  This also supported by the big population of Indonesia and the car ownership ratio in Indonesia which is lower than other ASEAN countries. The Indonesian Automotive Industry Association (Gaikindo) projects Indonesian car sales to grow to two million vehicles by 2020 and to three million by 2025.

Gaikindo stated that during year 2015, the domestic car sales  reach 1.013.291 units.

One of the key factors behind this success is the ability of the manufacturer to use the exhibition market as their sales and marketing tool during this slow period. For example, during 2015 the Gaikindo together with more than 20 car brands occupied a 91.000 square meters of exhibition area at ICE for 11 days. This exhibition has become one of the most successful automotive show in ASEAN and has become a benchmark for other events and shows. This year, the same event will once again held at ICE with more than 96.000 square meters area and 32 participating brands. It is is also supported by OICA, the world’s automotive industry organization.

The growth of Indonesian automotive sales is predicted between 5-7 percent by 2016. The growth also depends on the Indonesian government regulation about the fuel pricing and vehicle tax.