Indonesia’s Automobile Sales Results in the First Half of 2022

Indonesia's automobile sales in the first half of 2022 increased 20.8% year-on-year to 475,321 units. The increase was underpinned by the reintroduction of the luxury sales tax in February 2022 imposed on automobiles. Although the tax cut will be gradually phased out by September 2022, full-year sales are expected to reach 900,000 units according to GAIKINDO’s announcement in July 2022. Although there is a shortage of semiconductors, but it mostly affects vehicles priced at 500 million IDR or more, while the impact on the mass-market segment is expected to be not be so large. The market is forecast to return to the pre-corona level of over 1 million units in 2023 at the earliest.