Minister of Industry: Ford Unable to Compete in Indonesia

KATADATA - Minister of Industry Saleh Husin will summon PT Ford Motor Indonesia and ask the company to explain its decision to pull out of Indonesia. Until now, the Ministry has not received an official notice from the US automaker. “I will ask the Director General (of Metal, Machinery, Transportation Equipment and Electronic Industries) to summon them,” said Husin after a meeting at the Trade Ministry in Jakarta on Wednesday (1/27).

According to Husin, Ford’s decision to pull out of Indonesia will not have implications on the country’s industrial and automotive sectors. In fact, Indonesia will see new investment in the automotive sector next year amounting to IDR20 trillion.

The US automaker’s decision to end its investment in Indonesia is due to global economic slowdown which leads to the decline in its sales in the country. “I think Ford is decided (to close its operations) because their marketing strategy is unable to compete (in Indonesia),” said Husin.

As was reported on Monday (1/25), Ford Motor Company through its subsidiary PT Ford Motor Indonesia announced that it will close its business in Indonesia. “Today, we announce a difficult business decision to close our operations in Indonesia,” said Bagus Susanto, Managing Director of Ford Motor Indonesia.

The car manufacturer will close its dealership and terminate official sales and imports of all Ford vehicles starting next July. For the time being, the company will continue to open its dealers to offer sales, services and warranties.

“We are committed to provide continuous support, services and warranties after our exit,” Bagus said.

Ford has been present in Indonesia since 1989, when the company was represented by Indonesia Republic Motor Company (IRMC). Ford Motor Indonesia was officially established in July 2000 as Single Agent Brand Holder (ATPM) of Ford in Indonesia