Auto parts exports predicted to rise 22%

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)