BMI Research predicts that Indonesian households with an annual income of between USD $10,000 and $25,000 will form 38.4 percent of Indonesia's total population in 2021, from 23.2 percent at start 2017. Those households that earn an annual USD $5,000 - $10,000 will form 23.2 percent of the total Indonesian population by 2021, down significantly from 41.4 percent in 2017. The above-mentioned figures imply that, generally, Indonesians' purchasing power will strengthen considerably over the next couple of years amid expectation of accelerating economic growth. This should then translate into rising car sales in Southeast Asia's largest economy where per capita car ownership is still very low.

Besides economic growth and the expanding middle class, other factors that are considered to boost car sales in Indonesia in the next couple of years are rising investment in infrastructure development (including various toll roads) as well as the stable rupiah exchange rate. These findings originate from a survey that was conducted by Frost and Sullivan at the start of 2017.

Vivek Vaidya, Vice President of the Mobility Practice at Frost and Sullivan, also said the successful tax amnesty program of Indonesia, which runs until 31 March 2017, strengthens Indonesia's automotive sector and added that by 2020 Indonesia's middle class is estimated to number 150 million.

Read more: Analysis of Indonesia's Automotive Industry

Although the low cost green car and multipurpose vehicle are the best sellers in Indonesia, the sport utility vehicle is gaining popularity rapidly and may actually replace the multipurpose vehicle as Indonesia's most popular vehicle.

Indonesian Car Sales (CBU):

 Month    Sold Cars
      2012
   Sold Cars
      2013
   Sold Cars
      2014
   Sold Cars
      2015
   Sold Cars
      2016
 January      76,427      96,718     103,609      94,194      85,002
 February      86,486     103,278     111,824      88,740      88,208
 March      87,917      95,996     113,067      99,410      94,092
 April      87,144     102,257     106,124      81,600      84,770
 May      95,541      99,697      96,872      79,375      88,567
 June     101,746     104,268     110,614      82,172      91,488
 July     102,511     112,178      91,334      55,615      61,891
 August      76,445      77,964      96,652      90,537      96,282
 September     102,100     115,974     102,572      93,038      92,541
 October     106,754     112,039     105,222      88,408      92,106
 November     103,703     111,841      91,327      86,938     100,215
 December      89,456      97,706      78,802      73,264      86,573
 Total    1,116,230
   1,229,916
   1,208,019    1,013,291    1,061,735

 

     2009    2010    2011     2012     2013     2014     2015     2016
Car Sales
(car units)
 486,061  764,710  894,164 1,116,230
1,229,916 1,208,019 1,013,291 1,061,735
Car Exports
(car units)
  56,669   85,769  107,932  173,368  170,907  202,273  207,691

Source: Gaikindo

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