Country Report Indonesia
Key Country Matrix
2007 2008 2009 2010
G.D.P. ( USD Bn) 874 927 968
G.D.P. Growth Rate 6.3% 6.1% 4.4 5.5
G.D.P. per Capita 3,700 3,900 4,000
Motor Vehicle Market (Units) 400,000 607,800 486,000 700,000
Rental/Lease Fleet Size TBA 100,000 TBA
Rental/Lease Market Size (USD Million) 5.5 billion 7.3 billion TBA
Source GDP: World Bank
Motor Vehicle Market: Reuters
In 2009, the economy grew by 4.4 percent year-on-year
Indonesia's automotive industry performed well amid the global downturn in 2008 to register sales growth
of 39.3% to 603,774 units and become the second-largest vehicle market in the ASEAN region.
Indonesia fleet range between 3,000 to 4,000 vehicles, mainly operated by Multi National Companies with
operations in the country.
Prospective Entry Options
Partner: Indo Rent
Fleet size on long term leasing is approximately 4,000 vehicles.
Written by Paul Errington
Monday, 02 August 2010 11:18
Source. Asset Finance International
Weathered the global crisis smoothly
Indonesia, has weathered the global financial crisis relatively smoothly because of its
heavy reliance on domestic consumption as the driver of economic growth. Although the
economy slowed significantly from the 6%+ growth rate recorded in 2007 and 2008,
expanding at 4% in the first half of 2009, Indonesia outperformed its regional neighbours
and joined China and India as the only G20 members posting growth during the crisis.
The leasing industry is dominated by several companies, mainly joint venture companies,
whose shareholders are equipment vendors, distributors and company groups.
Some of the more prominent market lease suppliers are:
• Dipo Star Finance PT (a joint venture with Mitsubishi Corporation of Japan)
• Orix Indonesia Finance PT
• Caterpillar Finance
• BNP Lippo Utama Leasing
• Buana Finance PT
• UFJ BRI Finance PT
• Chandra Sakti Utama Leasing (CSUL)
• ANZ Panin Bank
One of the largest changes our industry now faces is Islamic Finance.
The fundamental aspect of Islamic Finance is that money can never attract interest
charges under the Islamic Law (Sharia ) The basic principle of Islamic banking is the
sharing of profit and loss and the prohibition of usury. Common terms used in Islamic
banking include profit sharing, safekeeping h, joint venture, cost plus and leasing.
Volvo Financial Services makes a splash in the Indonesian
Written by Paul Walsh
Tuesday, 10 August 2010 13:47
The Volvo group's captive finance company, Volvo Financial Services (VFS), has signed
an agreement with ORIX of Indonesia Finance (ORIF) to provide a comprehensive
finance program for Volvo Group customers in Indonesia.
Mårten Wikforss head of media relations with the Volvo group told Asset Finance Europe
that the move is part of an ongoing strategic expansion into Asia.
He said “Indonesia is one of the strongest markets in Asia and Asia in general is a very
important market for the Volvo group. Our sales in Asia last year were more than half
what they were in our traditional markets of North America and Europe. And our market
share in Asia has been growing steadily thanks to a number of acquisitions. For instance
we bought Samsung Heavy Industries in 1998 and Nissan Diesel in 2007 among many
A truly local provider in the Indonesian market
The partnership with ORIF means VFS will be able to provide lease finance products for
all the Volvo Group’s brands. These include Renault Trucks, UD Trucks, Volvo Trucks
and Volvo Construction Equipment.
The financial service offerings will be co-branded under the Renault Trucks Financial
Services, UD Trucks Financial Services, or Volvo Financial Services, and the ORIX
Indonesia positioned to set vehicle sales record among ASEAN
Written by Mack Chrysler
Thursday, 05 August 2010 09:17
The odds are reasonably good Indonesia will be the largest automotive market this year
for the first time among the 10-member Association of Southeast Asian Nations.
Through June, vehicle sales soared 76% to 370,208 units.
The Indonesian Automobile Industry Assn. (Gaikindo) is predicting a record 700,000
vehicles will be sold in the full year, up 44% from 486,060 in 2009 and well above the
previous high of 607,800 in 2008. Other sales forecasts range from 610,000 units to
Seldom, if ever, has Asia’s third most-populous nation, after China and India, been so
well-positioned to set records.
The World Bank reports “Indonesia continues posting
significant growth. The national economy is expected to
expand by 5.9% in 2010 and 6.2% in 2011.”
Consumer credit, a big driver of automotive sales, is readily
available, and about 75% of car sales are financed
Interest rates are as low as zero for 1-year loans, but the
typical deal is around 6% for three years.