The Indonesian government expects the country’s vehicle exports to increase, particularly since the implementation of the ASEAN Economic Community (AEC), which has turned the Southeast Asian region into one single market and production area. The AEC is expected to provide more opportunities for exporters by increasing the amount of regional trade conducted. The most important export markets in Southeast Asia are Thailand, the Philippines, and Malaysia. Many Indonesian-made vehicles are also exported to Japan and Saudi Arabia.
However, it is difficult for Indonesia to increase its vehicle exports because the nation’s automotive industry is still at the Euro 2 level, thus implying that its standards with regard to emissions are relatively low when compared to those of other countries. Other issues that limit exports of Indonesian-made vehicles are concerns about safety standards as well as a relative lack of technological and infrastructural development.