Indonesian auto auction market will see thousands of vehicles listed on the market in one evening, the latest indication that Indonesia’s auto industry is beginning to recover after years of recession.
Auto sales were down by 8% last year to a total of 4.4 million vehicles, with many dealers refusing to accept new vehicles as they were not ready for the rush to buy them.
The government is now looking to help revive the sector by allowing sellers to sell vehicles in one-day auctions.
“We will not allow sellers to be forced to sell their vehicles at one-time auctions,” Deputy Prime Minister, Datuk Seri Abdul Basit said in a statement on Wednesday.
“At this time, we are looking to facilitate the sale of vehicles in the next auction, which will be held on January 16,” he added.
This is a welcome development in the recovery of the Indonesian auto market.
The country has been suffering from a severe recession since 2014, and its GDP has plummeted by a staggering 22% since 2012.
The country’s auto sector has been struggling to recover in recent years after the country’s biggest carmaker, Ford, took over the sector in 2001.
It is now one of the world’s largest carmakers with production capacity of nearly 9.4m vehicles annually.
The market was hit hard by a string of earthquakes that shook the region in 2015, leaving tens of thousands of people dead and damaging thousands of buildings.
More than half of the cars in Indonesia’s market are in poor condition.