JAKARTA-car sales by general importer (IU) in the domestic market in 2013 is predicted to drop 50% year-on-year due to competition with the sole agent (ATPM).
Chairman of Motor Vehicle Importers Association of Indonesia (AIKI) Tommy R.Dwiandana said under normal conditions the sale of imported cars intact (completely built-up/CBU) in Indonesia on average 8,000 per year.
However, since the enactment of the Economic Partnership Agreement Indonesia-Japan (IJ-EPA), which provides facilities for the import duty relief sole agent (ATPM), the competition becomes unhealthy with IU making CBU Japan car sales plummeted.
"Our sales in 2011 were approximately 7,000 units, while in 2012 only 5,000 unit.Kondisi we expect this to continue and 2013 may fall by half because a lot of our members out of business," he told Business Today.
According to Tommy, with the Government of Indonesia IJEPA apply different treatment between ATPM with IU. Since the implementation of IJEPA, ATPM duty levied only about 5% -7% on the import of Japanese cars, while IU normal tariffs by 45%.
"We do not really matter ATPM involved in selling Japanese cars, as long as the cost of the same and the same tax. But if the difference is a lot, can-Rp70 million to Rp50 million per unit, it being not fair, "he said.
Tommy said that under normal conditions the average IU can sell 60 units per month, but since the application IJEPA can only sell half and had lost Rp50 million to Rp70 million per sales per unit.
Chairman of Motor Vehicle Importers Association of Indonesia (AIKI) Tommy R.Dwiandana said under normal conditions the sale of imported cars intact (completely built-up/CBU) in Indonesia on average 8,000 per year.
However, since the enactment of the Economic Partnership Agreement Indonesia-Japan (IJ-EPA), which provides facilities for the import duty relief sole agent (ATPM), the competition becomes unhealthy with IU making CBU Japan car sales plummeted.
"Our sales in 2011 were approximately 7,000 units, while in 2012 only 5,000 unit.Kondisi we expect this to continue and 2013 may fall by half because a lot of our members out of business," he told Business Today.
According to Tommy, with the Government of Indonesia IJEPA apply different treatment between ATPM with IU. Since the implementation of IJEPA, ATPM duty levied only about 5% -7% on the import of Japanese cars, while IU normal tariffs by 45%.
"We do not really matter ATPM involved in selling Japanese cars, as long as the cost of the same and the same tax. But if the difference is a lot, can-Rp70 million to Rp50 million per unit, it being not fair, "he said.
Tommy said that under normal conditions the average IU can sell 60 units per month, but since the application IJEPA can only sell half and had lost Rp50 million to Rp70 million per sales per unit.
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