Car Production Reaches 88,904 Units

Jakarta (Antara Bali) - Indonesia's domestic car production surpassed the average capacity of 88,904 units a month in the first semester due to increasing demand and exports, according to Gaikindo.

"Car production in the first semester this year reached 533,429 units with production in June estimated at 103,000 units. Montly car production meanwhile is only 75,000 units out of a total capacity of 900,000 units a year. It means car production in the first semester this year has been above the average by 18.54 percent," the first chairman of the Association of Indonesia Automotive Industries (Gaikindo), Yongki D Sugiarto, said here on Monday.

Yongki said if monthly production is above the average brand holder producers (APM) would increase working hours to increase production.

"Production has been started to be increased last year and APMs must add extra working hours with a consequence of increased production cost because total automotive production capacity has surpassed the target," he said.

Car production in April had reached 84,322 units while the demand reached 87,145 units. Production in May was recorded at 97,308 units with sales at 95,541 inits and last month sales reached 101,743 units with production at around 103,000 units.

Meanwhile "there has been a sharp increase in completely built-up car exports. In the first semester the CBU exports are estimated to reach 89,063 units surpassing the realization in 2010 at only 85,796 units," he said.

Compared to CBU exports in the first semester last year which were recorded at only 50,002 units exports of CBU cars in the first semester this year were up by 78.12 percent.(*/M038/T007)