KONTAN.CO.ID - JAKARTA. The automotive industry in Indonesia seems to be working hard to create recovery momentum. After 2021 rises from adversity, the automotive industry hopes to continue its positive pace in 2022.
Citing data from the Association of Indonesian Automotive Industries (Gaikindo), wholesale car sales or distribution from factories to dealers grew 66% year on year (yoy) to 887,202 units. As for motorcycle sales, referring to data from the Indonesian Motorcycle Industry Association (AISI), throughout 2021 it will reach 5.05 million units. Growing 38% compared to 2020 which was only 3.66 million units.
In 2022, Gaikindo targets the cars sold to reach 900 thousand units. Meanwhile, AISI has set a target of 5.4 million new motorcycles sold this year. This challenge is not easy. However, positive signs continued to pulse throughout January-May 2022. In the motorcycle market, sales during January-May 2022 reached 1.95 million units. As for the car market, on a wholesale basis, from January to May 2022 sales have reached 544,027 units.
This development continues to attract the attention of the related industry, not just the direct automotive players. One of them is GPS Tracker, which is a supporter of the automotive industry. Fox Logger CEO, Alamsyah Cheung stated, the largest internet of things (IoT)-based GPS Tracker provider in the country, stated that the government did have a big role in efforts to lift the automotive industry through the relaxation of Sales Tax on Luxury Goods (PPnBM).
However, he also highlighted the role of the multi-finance industry in driving the momentum for the revival of the automotive industry in the country. "The growth of the Indonesian automotive industry will not be separated from the support of financial institutions," said Alamsyah, in a release, Thursday (30/6).
In general, automotive financing does contribute about 70% of the total financing of the multi-industry. Since 2000, the financing business has grown rapidly with an annual average growth rate (CAGR) of 25%-30%, particularly in motorcycle financing.
Meanwhile, based on the Financial Services Authority (OJK), the percentage of motor vehicle ownership financing in Indonesia reaches 74% of the industry's total net financing receivables. As of December 2021, it is IDR 364.23 trillion.
The growth of the multi-finance industry is directly proportional to the movement of the economy and the growth of the automotive industry. When the economy recovers and the automotive industry moves, the multi-finance industry will automatically move as well. Moreover, if the government provides incentives, such as the relaxation of Sales Tax on Luxury Goods (PPnBM), of course the finance industry will spin faster to support the needs of people who want to own motorized vehicles.
“Fox Logger is essentially a party that becomes a new business process in the operational activities of a multi-finance company that has a very significant impact on the performance of the collection division. Currently, Fox Logger has collaborated with ten multi-finance companies in Indonesia," explained Alamsyah.