Inp.polri.go.id - Tangerang.  Minister of Industry Agus Gumiwang Kartasasmita has called on automotive manufacturers to refrain from raising their prices amidst a sluggish market.

"Essentially, the government requests that manufacturers do not increase prices as the market is currently weak," he said after attending the opening of the Gaikindo Indonesia International Auto Show (GIIAS) in Tangerang, Banten, on Thursday (18/7/2024).

Minister Agus noted that consumer purchasing power has declined, partly due to the high exchange rate of the US dollar against the Rupiah. Hence, the government is asking manufacturers to hold off on price hikes.

He highlighted the Low-Cost Green Car (LCGC) program, which aims to promote environmentally friendly vehicles. The government is currently assessing the permissible price increase for LCGC units by participating manufacturers, according to antaranews.com.

The Indonesian automotive industry's vehicle sales in the first half of 2024 have been less than optimal compared to the previous year. 

According to data from the Indonesian Automotive Industry Association (Gaikindo), wholesale sales in the first half of 2024 reached 408,012 units, down 19.5% from 506,427 units in 2023.

Retail sales also fell, recording 431,987 units, a 14% drop from the previous year's 502,533 units. Gaikindo's June report shows wholesale sales at 72,936 units, an 11.8% decrease, while retail sales were at 70,198 units, down 12.3%.

(mg/inp/pr/nm)