Jakarta (ANTARA News) - Indonesia is ready to rival Thailand as an automotive production base, the president director of PT Astra Internasional (ASI), Prijono Sugiarto, said here on Saturday.
"This year is the year of automotive for Indonesia as a number of supporting indicators grow positively," he said.
Compared to Thailand, Indonesia was now better in terms of social, political and economic conditions, he said.
He said the Bank Indonesia reference rate could be categorized as conducive for the automotive sector, set at 6.5 percent.
"Basically all automotive companies abroad already have blueprints and plans on
where or in which country their production base will be," he said.
He said Indonesia like Thailand, also had supporting industries.
He said why more companies had chosen Thailand so far was because the social and
political situation in that country was relatively more stable compared to other Southeast Asian countries including Indonesia.
"Now conditions are different. Indonesia is more stable in social, political and economic terms," he said.
He said Indonesia was now one of the countries in the world with the lowest productio costs.
"We believe we are capable and right now is the right time to prove to the market that Indonesia is good especially its automotive sector," he said.
He said with its economy growing six percent Indonesia had more opportunities to become a foreign automotive production base. (*)