Astra International: Indonesia's Automotive Industry Poised to Recover

JAKARTA, KOMPAS.com – PT Astra International Tbk is optimistic the automotive industry in Indonesia will rebound during the transition to the new normal.

Business and economic activities have gradually picked up as parts of Indonesia relaxed lockdown measures.

Sales of cars and motorbikes, however, have yet to fully recover.

Also read: Indonesian Trade Performance Nosedives Post-Ramadhan

“With the large-scale social restrictions (PSBB) transition phase enforced by the Governor, we hope we will be able to quickly recover,” said President Director of Astra International Djony Bunarto Tjondro on June 16.

Djony said that based on Astra International’s data, the automotive industry in June 2020 looks promising compared to May 2020 figures.

Last month, sales were down 95 percent year on year.

“In May, the retail sales of four-wheel modes of transportation dropped, but we’ve noticed that the performance is better in June,” said Djony.

Astra International has not publicly announced any projections for the post-coronavirus pandemic period.

The company is interested in seeing the Q2 reports for 2020 or performance from April until June 2020.

Despite the hardship that Astra International has faced amid the coronavirus pandemic, it remains positive the industry will slowly get back on its feet.

Read also: Airlines and Hotels in Indonesia Need 2 Years to Recover Post Pandemic

“I believe that every goal has a silver lining so even in the midst of everything that’s going on, an opportunity will arise. We remain optimistic,” said Djony.

Automotive industry takes massive hit in May

The Association of Indonesia Automotive Industries (Gaikindo) said car sales continued to weaken in May 2020.