automotive

Indonesia May Experience An Influx Of Imported Cars Due To Trump's Policies

The Chairman of the Indonesian Automotive Industry Association (Gaikindo), Yohannes Nangoi, has expressed concerns regarding the potential influx of imported vehicles into Indonesia. This warning follows the United States' decision to reintroduce high import tariffs on various countries. 

Nangoi believes that the policies implemented by the Trump administration could significantly alter the automotive trade landscape. Countries that manufacture vehicles may seek alternative markets, raising fears that Indonesia could become a target for these exports. 

"The U.S. has introduced new tariffs, which means manufacturers from outside America are facing challenges in entering the U.S. market," Nangoi stated recently in Central Jakarta. 

He noted that this situation has led several countries, which have heavily relied on automotive exports to the U.S., to experience an oversupply. One of his main concerns is that Indonesia might become a dumping ground for these surplus products. 

"This could lead to an influx of products. Indonesia, in particular, does not export to the U.S. We send our exports to Mexico, Canada, and Latin America. My worry is that countries facing oversupply will start directing their vehicles to Indonesia. This is something we need to monitor closely," he explained. 

Although he acknowledged that the Indonesian automotive industry is not directly affected by U.S. tariffs since it does not export to that country, Nangoi emphasized the need for serious anticipation of the situation. 

"We do not export to the United States, so there is no direct impact. While some components may be exported to the U.S., we do not. Conversely, we do not import from the U.S. either; for instance, Ford vehicles come from Thailand, not America," he added. 

However, he highlighted the potential indirect effects of this policy, particularly from countries like Mexico, which has been a primary supplier to the U.S. On the other hand, Indonesia also exports completely built units (CBUs) to Mexico. 

"The only impact we might see is from Mexico, which previously exported to the U.S. Now that tariffs have increased, Mexican products are facing oversupply. Therefore, we need to remain vigilant," he concluded. 

Tag: Gaikindo Import Tariffs Yohannes Nangoi