REPUBLIKA.CO.ID, JAKARTA -- Ministry of Industry believes that car market is more exciting in foreign markets than domestic markets. No wonder, Indonesia is able to export thousands of cars, such as low-cost green car (LCGC) each month overseas.

Directorate General of High Technology-Based Leading Industry, Budi Darmadi said that the demand of cars in the country was still below multi-purpose vehicles (MVPs). The production cost is also more expensive. Hence, majority of production was exported.

According to Darmadi, Indonesia is able to export 3,000-4,000 cars per month. It was not imposed the value-added tax (VAT).

Suzuki Indomobil Motor for example, exported LGCG Karimun Wagon R to Pakistan. Suzuki also began selling MPVs, the Ertiga to Thailand in May last year and to Brunei Darussalam in April 2014.

Based on Ministry of Industry data, Indonesia has also exported its locally assembled cars to more than 80 destinations overseas, including Latin America and Africa. Indonesia exported 170,907 complete built units (CBUs) and 105,380 sets of completely knock downs (CKDs) last year.

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