Indonesia a lucrative market for expensive cars

Burhanuddin Abe, Contributor, Jakarta

The number of luxury cars in Indonesia, like in many developing countries, is still comparatively small. However, it is not the quantity that matters here, for luxury cars and their owners are a highly exclusive and elitist group. The exorbitant prices are the least of their worries, as owning a luxury car is a true reflection of their prestige, achievement and status in society.

Take George Widjojo for example. This lawyer, whose schedule is full of major cases, is fond of collecting sports cars, especially the classics. His huge garage is filled with a 1981 Ferrari 308 GTS, a 1975 Ferrari Dino 308, a 1975 Maserati, a 1988 Lamborghini Countach, a 1975 Alfa Romeo Spider and another Alfa Romeo, the 1969 1750 GTV.

"I like the classic Italian sports cars for various reasons, like their design is unique and they turn into legendary vehicles," he said, as quoted by SWA magazine. However, he also appreciates Japanese cars, as indicated by the 1969 Nissan Fair Lady 240Z that he also owns. The lawyer is now eying a Honda NSX, which many car observers think will be one of the world's classic sports cars.

George is not alone in this exclusive "club" of luxury car owners. Setiawan Djody (businessman), Hotma Sitompul (lawyer), Susila Budi Moeffreni (real estate businessman) are also avid collectors of these extremely expensive cars. A number of celebrities, like the comedian Mandra, is also on this list with his Rp 3.5 billion Mercedes.

The trend of purchasing luxury cars started and was made possible when the government allowed the import of completely built up cars in 1997. The moment to realize their dreams was welcomed by the superrich of the country. Authorized importers and distributors of various luxury cars, such as Jaguar, Porsche, Bentley, Ferrari and several others immediately opened up their offices here and from day one, to their delight, demand slightly exceeded their stock.

Even Ferrari decided to allot a larger number of cars for its market here. Before deregulation, the creme de la creme of Indonesian society had to purchase luxury cars directly from the manufacturers in their country of origin. Next to authorized importers, a number of dealers have also cropped up in the luxury car market, like William Mobil, Ivan Mobil, Simprug Motors and many others.

The significant growth of luxury car sales in Indonesia can be illustrated by sales figures for Jaguar. PT Grandauto Dinamika, the authorized dealer for Jaguar in Indonesia, reported an almost 50 percent increase for its 2002 sales figure. In 2002, it sold 157 Jaguars, while in 2001 the 110 Jaguars sold was already a mind-boggling figure. Again in the following year sales went up as PT Grandauto reported that 184 Jaguars were sold, thus making the population of Jaguars close to 500 in the country.

Meanwhile, PT Eurokars Chrisdeco Utama, the authorized dealer for Porsche in Indonesia, reported more fantastic sales figures: 70 cars for the first semester, which means that about 100 Porsches are owned by Indonesians. Sarwono Tjokrowinoto, the company's president director, said that the company's success only confirmed his optimism about the future of the luxury car business here.

Similarly, Ferrari sales have proven to be another major hit. Ferraris are produced in limited quantity and Indonesia gets a quota of only eight cars a year. All eight Ferraris were sold out almost instantly, including the rare, extremely exclusive Ferrari Enzo, as only three were allotted here out of the 300 worldwide. The secretary-general of the Ferrari Owners Club of Indonesia, George, said that the quota for Indonesia had been slightly increased to 10 Ferraris annually. He also estimated that not less than 40 Ferraris are now owned by Jakartans.

The number of Bentley cars in Indonesia is less than the number of fingers of both hands, said Tryfena Sri Rahayoe, marketing communications specialist of PT Grandauto, which is also the authorized dealer for Bentley in Indonesia, in addition to its Jaguar dealership here. She said that only about 150 Bentleys were produced for the entire world and most Asian countries were allotted only a small number, sometimes even only one Bentley for Indonesia.

"No wonder the Bentley is really a rare species here." The positive side probably is that this makes it even more desirable.

The luxury car market has been made livelier with the entrance of various newer series and types of BMWs. Helena Abidin, communications manager of PT BMW Indonesia, said that in the not- too-distant future the company planned to launch the BMW X-3 in two variants, the 2.5i and 3.0i. The latest 5 and 6 series are also planned to be marketed soon in the premium category.

Another challenger in this high-end segment is one of the world's extremely luxurious brands, Maybach. This car with a long history of renowned luxury and state-of-the-art technology is in a way related to Mercedes Benz. PT DaimlerChrysler Indonesia said that the launch was planned within this year. Only five Maybachs will be available this year due to its exclusivity.

With this array of luxury cars it is only natural that the competition is getting tougher. However, that is to the advantage of customers as better service from the nationwide network of professionally managed after-sales centers gives a real sense of security for the maintenance of these extremely expensive items. So for those who can afford it, all they have to do now is choose the brand of their dream.