Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Automotive  >>   Peugeot may start Indonesian assembly line
NEWS UPDATES 3 July 2010

Peugeot may start Indonesian assembly line

Related Stories
April 1, 2010
Indonesia’s car output seen rising 51% this year

March 29, 2010
Indonesian car exports rebound to pre-crisis level

March 23, 2010
Dealers worry Thai unrest may affect car exports to Indonesia

February 16, 2010
Indonesian car exports seen reaching 80,000 units in 2010

February 15, 2010
Toyota minivan leads Indonesian automobile sales

Indonesian car producer PT Astra International is in talks with its French principal partner PSA Peugeot Citro*n to determine the possibility of reviving an assembly line for Peugeot cars here amid an expected automotive boom. "Peugeot has given a positive signal that we can assemble its cars in our Gaya Motor plant in Jakarta in 2012," said Constantinus Herlijoso at the launch of the European crossover, Peugot 3008 on Friday, according to the Jakarta Post.

Herlijoso said domesticating the assembly line would provide a significant boost to the sales of Peugeot cars in Indonesia as production costs would be more competitive with lower taxation, as well as the utilization of local laborers and content, expected to reach 40 percent for each unit.

"We are now discussing which model to assemble in the country," Herlijoso said.

In 2003, Peugeot began assembling cars in Indonesia with the 206 model, but halted its output just two years later due to the skyrocketing value of the euro, which hiked prices and plunged overall sales from 2,000 units in one year, to just 85 last year.

Astra currently imports all Peugeot cars in the form of the CBU.

"This condition means Peugeots are sold here at a relatively high price due to high tax for imported CBU cars," Constantinus added.

The import duty for cars imported in the form of the CBU is currently 40 percent, while cars imported in the form of a complete knock down (CKD) is 15 percent.

Astra currently targets to triple the sales of Peugeot cars to 120 units this year with the launch of the 3008 model. Herlijoso said the company expected to sell about 60 units of the 3008 model, which are priced at about Rp 430 million (US$47,300), by the end of this year. Global sales for the 3008 model were at 50,000 units last year.

This year, Gaikindo expects the country's total car sales to reach 680,000 units.

As of last month, car sales reached 367, 832 units.

Astra fell the most in nearly four weeks in Jakarta trading on Friday after the June inflation accelerated more than expected, reducing the outlook for the Indonesian company's automotive sales, Bloomberg reported.

Astra declined 2.4 percent to 46,400 rupiah as of 3:01 p.m. local time, set for its biggest drop since June 7.

The stocks fell as Bank Indonesia may raise its benchmark interest rate earlier than expected because of faster inflation, said Muhamad Sugiarto, an analyst at PT Lautandhana Securindo in Jakarta.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand