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Indonesia's Automobile Market Forecast for 2023
The Indonesian automobile market is expected to recover to around 1.028 million units in 2022. In February 2022, Indonesia reintroduced tax reduction measures for the luxury tax imposed on automobiles, which was previously implemented from March 2021 to the end of the year. As the economy recovered from the pandemic, this tax cut boosted demand.
Automobile sales in 2023 are expected to increase slightly from the previous year to around 1.03 million units. The global economy is projected to stagnate. For this reason, the International Monetary Fund and Indonesia’s central bank Bank Indonesia have predicted a slowdown in Indonesia's GDP growth rate; however, the country’s automobile market is forecast to grow. The rate of growth will depend on the pace of rising prices. However, if tax reduction measures are introduced in 2023, they could boost demand.