Gaikindo Assesses US Import Tariffs Have No Impact on Car Sales

KatadataOTO – Indonesia is one of the countries affected by import tariffs from the United States. Donald Trump has set a rate of 32 percent for the country.

This new policy is feared to have a negative impact on Indonesia. Especially for domestic industries.

However, Gaikindo (Association of Indonesian Automotive Industries) states that the United States import tariffs will not impact the sales of new cars in the country.

“There should be no impact on Gaikindo members. First, we do not import from or export to America,” said Kukuh Kumara, Secretary General of Gaikindo, when contacted by KatadataOTO on Wednesday (09/04).

Photo : Daihatsu

Kukuh added that manufacturers under Gaikindo do not produce left-hand drive cars to be sold to Uncle Sam's country.

However, they do produce right-hand and left-hand drive four-wheeled vehicles for other countries, such as the Philippines. Therefore, Kukuh believes that new car sales in Indonesia will remain safe.

“There is no impact (from the US import tariff policy). Unless it's economic factors, if our economy is not good and purchasing power is low, then there will be an impact,” Kukuh continued.

He also hopes that the automotive market conditions in Indonesia will remain conducive, despite the import tariff policy implemented by Donald Trump.

It should be noted that Indonesia does not yet export cars to the United States. However, some four-wheeled vehicle components are sent there.

Different from Aismoli

On the other hand, what Gaikindo said is quite different from what Aismoli (Indonesian Electric Motorcycle Association) feels.

They believe that the United States import tariff rules will, to some extent, affect the domestic electric two-wheeler industry.

“Although Indonesia is not yet an exporter of electric motorcycles or their components to the United States, the impact can be felt indirectly domestically,” said Budi Setiyadi, Chairman of Aismoli, in an official statement.

Budi stated that on a macro level, Donald Trump's new policy risks causing inflation. Then there is the potential for a decrease in public purchasing power for EVs (Electric Vehicles).

Photo : KatadataOTO

Then, other countries facing similar conditions, like China, will look for alternative markets besides the United States.

Nevertheless, Budi hopes that President Prabowo Subianto and his staff will undertake various initiatives that can create a stronger EV market.

Then, one area that the government needs to safeguard is the TKDN (Domestic Component Level) policy for various products.