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The First Korea-Indonesia Automotive Dialogue Held to Encourage Exports

According to Yonhap News,

(SEOUL=Yonhap News) The Korean government met with the Indonesian government for the first automotive talk to strengthen bilateral cooperation.

The Ministry of Trade, Industry and Energy held the First Korea-Indonesia Automotive Dialogue on August 24 at Lotte Hotel, Seoul.

The meeting showed a concrete progress of the Korean government's New Southern Policy.

The two governments signed a memorandum of understanding on bilateral industrial cooperation in November last year on President Moon Jae-in's state visit to Indonesia, and newly established an automotive dialogue channel at the Deputy Minister level to build cooperation in the automobile industry.

The volume of Indonesian automobile market in last year was about 1 million units, which accounts for one-third of the ASEAN automobile market.

However, the Indonesian market is mostly dominated by the Japanese products, that holds 97% majority, while the Korean products only accounted for 0.2%.

At the dialogue, the Ministry introduced the outstanding vehicle quality, competitive price and advanced technology of South Korea, the world's sixth largest automobile producer.

The Ministry pointed out that the regulation in Indonesia, which applies the consumption tax according to the types of the car (four or five doors) and displacement (below 1,500 cc or above), is lifting the non-tariff barrier to the Korean businesses that mainly produce four-door cars with 1,600 cc capacity.

"Both governments agreed that various car brands will help build a healthy automobile ecosystem in Indonesia, and we will work together to make Indonesia the center of ASEAN car industry while supporting Korean businesses enter the Indonesian market," an official from the Ministry said.

They also decided to hold the Korea-Indonesia Automotive Dialogue on a regular basis and strengthen their cooperation on future business sectors, in which Korea is accumulating its technology, including electric cars, hydrogen cars and autonomous vehicles.

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Source Text

** This article was translated from Korean.

Source: Yonhap News (August 24, 2018)

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