Auto parts exports predicted to rise 22%

JAKARTA (JP): Indonesian auto parts producers expect a 22 percent increase in exports this year to about US$550 million, from about $450 million last year.

They say the projected increase is the result of increased demand from the United States.

Indonesian Automotive Parts and Components Industries Association chairman A. Syafiun said here on Friday export markets were very promising, but the association's members were still unable to tap the full potential of the markets due to their limited production capacity.

"If we had a larger production capacity, our exports would easily exceed the target," he said.

Syafiun said locally made auto parts were exported to 40 countries, including Japan, the Philippines, Malaysia the United States and countries in Europe. The exports include radiators, batteries and filters.

The association's members are still seeking financing to expand their production capacity to increase the country's share of the world's auto parts market, he said.

The annual value of the world's auto parts market is $300 billion.

According to him, the association's members began to increase their exports only in 1998, when local car producers began to cut production due to the economic crisis.

The sale of auto parts in the domestic market reached Rp 25 billion last year. "If the country's political situation becomes more stable, our domestic sales could increase by 15 percent," he said.

Syafiun said the association would hold an international trade exhibition from Sept. 26 to Sept. 29 to promote locally made car components to international buyers.

He said seminars and workshops also would be held during the Asia Pacific Auto Mechanika 2001 and Jakarta Motor Show International, which will be held at the Jakarta Fairgrounds.

Syafiun said auto parts producers from Malaysia, Thailand, Taiwan, China, Japan, Singapore, Korea and Australia would take part in the exhibition.

"The committee has invited potential buyers from the United States, Pakistan, India, New Zealand, the Middle East and Africa to the expo," he said.

Syafiun said the association's 124 members were ready for increased competition from auto parts producers from other ASEAN countries when the ASEAN Free Trade Area takes effect on Jan. 1, 2003. (03)