Several stakeholders in Indonesia's automotive industry requested the government to be more selective in terms of issuing investment licenses to foreign investors because they believe the large foreign presence in Indonesia's automotive sector curbs opportunities for domestic players. This specifically applies to car components and spare parts. Most of the world's leading car brands - led by Japanese car manufacturers - have production facilities in Indonesia. For car components they prefer imports from the mother country.

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Indonesia Investments updated the company profile of Astra Otoparts. This company, which is a subsidiary of Astra International, is Indonesia’s leading automotive component company. It produces and distributes spare parts for both motorcycles and cars. Astra Otoparts is supported by seven business units, fifteen consolidated subsidiaries, and eighteen associates and jointly controlled entities. A number of these subsidiaries or affiliated companies are joint ventures with prominent component manufacturers from Japan, China, Europe and USA.

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Car sales in Indonesia are expected to exceed the target set by the Indonesian Automotive Industry Association (Gaikindo) in 2013. The institution originally set a target of 1.1 million sold car vehicles in 2013, which is similar to the sales result in 2012. However, in September 2013 car sales recorded a new monthly record (115,921 sold units) after consumers sped up car sales as prices will increase in October. Up to the third quarter of 2013, total car sales have increased 11.2 percent compared to the same period last year.

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In recent years, Indonesia's car sales have shown robust growth, culminating in a record high number of 1.12 million sold car units in 2012. This is an important statistic because car sales inform us about the state of the economy. Generally, rising car sales indicate an expanding economy while declining car sales indicate that the economy is slowing down. When we take a look at the table below, there is a link visible between Indonesia's GDP growth and rising car sales, except for 2011 to 2012 when GDP growth declined while car sales rose.

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