Current affairs

Impact of the Corona disaster on the new and used car markets in Indonesia

The rate of decline in used car prices is currently increasing

The impact of the new coronavirus led to the implementation of the PSBB (Large-Scale Social Restriction) in the automobile sales market of Jakarta, the province of West Java, where Bekasi and Karawang are production bases, as well as the implementation of the new coronavirus, causing both supply and demand to stagnate.

Indonesia's car shipments have been on a downward trend after peaking at 1.22 million units in 2013, with 1.03 million units in 2019 and a significant downward revision to 600,000 units from the target of 1.08 million units this year, which will be affected by the Corona disaster, but it still looks tough to achieve.

In Indonesia, where the used car market is very active, the price of Japanese cars in the middle and lower classes of the mass market does not fall easily, falling 10% in the first year and then gradually.

However, in the last few years, inflation has remained low at an average of 3.5% per year, and the corona disaster has increased the supply of cars to meet the cash flow needs of companies and the cost of living of individuals, while demand has decreased due to restrained buying due to uncertainty about the future.

The Toyota Avanza Veloz 1.3 AT that I'm driving right now is a popular car that I bought in 2016 for 202juta, but the current used sales price for 2020 should be able to sell it for around 150juta if I estimate it from my previous senses, but at the current market price it was down to around 130juta.

On the other hand, the price of a new car in the same class has risen to around 230 juta, so even if you make a tukar tambah (sell your current car and pay the difference in cash), you will have to take out more than 100 juta, which will further reduce the demand for replacement.

Until 2016, the rate of decline (amortization rate - inflation rate) averaged about 5% a year, but in the last few years, the average inflation rate has been low at about 3.5%, and now it is calculated to have risen to about 8% a year on average due to a combination of buying restraint resulting from the corona disaster.

There are some great cars that are unaffected by inflation and whose prices keep going up

Japan is in a long-term deflationary trend and prices have hardly risen in the last 20 years, but living in Indonesia, you naturally become concerned about the effects of inflation and interest rates when purchasing assets such as real estate and cars.

There was a time when it was common knowledge that "cars sell for more than when you bought them", and this was around 1998-1999, when inflation was high enough to push the rate of decline in car prices (depreciation rate - inflation rate) to a positive level, so cars certainly sold for more than their acquisition price in the used car market.

However, regardless of the depreciation rate or inflation rate, there are some cars that continue to rise in price the older they are, and one example is the Toyota FJ-40 Land Cruiser.

The price of this car was 65 juta when I bought it from an Australian, but if you look at the current price of the same model, it seems to be trading at 200 juta to 250 juta.

As a Balinese friend of mine who runs a used car agent said, "The hardtop (a.k.a. the Toyota FJ-40 Land Cruiser) never gets old (tidak ketinggalan zaman)," and the 4-liter monster engine is still used to tow accidents, transport generators, and more, and it can easily make its way through steep mountain roads and bad roads on a tour of Mount Bromo in East Java.

What is particularly noteworthy is the impeccable exterior that compensates for the poor fuel economy that goes against the ethical (ethical = environmental conservation and social contribution) era, which is only 4-5 km per liter, and the artistic form that intersects straight lines and curves, which I do not doubt that I still believe (exaggerate) that this is the greatest masterpiece miraculously produced by the world's Toyota in the 130-year history of automobiles.


情報共有 1

The sharing of visible results leads to a common recognition of the problems, but if there are people who are troubled because the scarcity of information is diminished by the increasing sharing, the political power to increase the position by monopolizing useful information is at work.

インドネシアのスタバの店員にありがたい人生の教訓を教わった件 2

When you order your usual iced coffee at your regular Starbucks, a familiar clerk usually talks to you in a friendly and familiar way, like "You came at an unusual time today," or "Is your usual iced coffee okay today?

宗教によって異なる「死んだらどうなる」の考え方 3

Both Christianity and Islam are religions derived from Judaism and believe in the one and only God, Jesus Christ (God Himself) or Allah, respectively.

株価操作なんてインドネシア株では当たり前 4

Stock prices fluctuate with sell and buy orders, and if you get a lot of sell orders and a lot of buy orders, the other investors will follow suit with "me too" and the stock will go up.

心臓に毛が生えたインドネシア人のずうずうしい転職活動を応援してみた 5

Since many Indonesians can't maintain mental stability without revealing a secret story to someone else.

日系企業のインドネシアでの存在意義 6

If Japan's population continues to decline at the current rate, domestic demand will continue to shrink, and if this happens, it is inevitable that domestic companies that find it difficult to survive in the Japanese domestic market alone will look for ways to make a living in overseas markets.

チャンスはあるが勝てる分野が 7

After living in Indonesia, talking to people on my own, and gradually understanding the local situation, I realized that starting a business in Indonesia is surprisingly difficult. The reason for the difficulty is the high shipping costs and tariffs, the competition from local companies, and the high running costs of IMTA and DPKK.

インドネシアのシステムインテグレーション業界 8

The other day, I had the opportunity to exchange opinions with JETRO (Japan External Trade Organization) about IT investment by Indonesian SMEs, and they raised an important issue related to the existence value of system integrators, such as "How can we explain the cost benefits of system investment?

肉体と精神と心と魂 9

Speaking of "Body and Soul," it's the debut song of SPEED, a member of the LDP's House of Councillors, Eriko Imai, who was unofficially appointed as parliamentary secretary of the Cabinet Office following yesterday's cabinet reshuffle, and the name of a long-established Indonesian women's fashion brand.

ジャカルタのラーメン市場 10

I came to Indonesia for the first time in October 1997. I didn't understand Indonesian, my job was hard, the people around me were unreasonable, and there was a time when I wanted to go back to Japan for a while.

ブランド力、技術力、資金力の3要素 11

After the Jakarta riots of 1998, when the rupiah plummeted and domestic companies with foreign dollar-denominated debt were struggling to pay interest, I was looking for a new business in Indonesia that would allow me to earn foreign currency.

日本とインドネシアの間でのタイムマシン経営が通じなくなっている件 12

I think that Yoshinoya overcame the frame of Japanese food and became Indonesian soul food. I am happy to see the scene where Japanese food culture is accepted by Indonesian people.

不景気の歴史 13

Since I came to Indonesia, I have seen the economic recession several times, but because of the spread of the new coronavirus this time, the economy will definitely go into recession, and in a few years' time it may be called corona shock or corona recession.

日本のバブル経済崩壊後とインドネシアの通貨危機後 14

When I entered university in 1991, at the end of the bubble economy, land and stock prices were exploding, Mitsubishi Estate had bought the Rockefeller Center Building, a symbol of America, and the women of the one-length body-con (like the Bubbly Dance of Tomigaoka High School's dance club) were dancing at Juliana Tokyo in the waterfront bay area, waving their fans.

内需と外需の自国経済に及ぼす影響 15

The situation in Japan is that even if public works investment is made, the money stays in the savings of companies and individuals, and domestic consumption does not increase, while the situation in Indonesia is that even if domestic consumption increases, the ratio of imported consumer materials is high, and domestic assets are flowing out to foreign countries.

2019年の総選挙を前にインドネシア政治史のおさらい 16

As the campaign (Kampanye) for next year's presidential election (Pemilu Pilpres Pileg Indonesia 2019) is lifted, it has been decided that the order in which the ballot papers will be printed will be No. 1 for the incumbent President Jokowi and Vice President Mahuru candidate pair and No. 2 for President Prabowo and Vice President Sandiagauno candidate pair.

インドネシアの国土と風土が生み出す産地特有のコーヒー 17

Located in the coffee belt between the Tropic of Cancer and the Tropic of Cancer, Indonesia is a country suitable for coffee cultivation, and during the 300 years of Dutch colonial rule that followed the advance of the East India Company in 1602, Arabica coffee was brought to the country and cultivation began in the plateau region with a favorable climate.

-Current affairs