Vehicle Age Restriction to Benefit Producers

TEMPO.CO, Jakarta - Jakarta Governor Basuki "Ahok" Tjahaja Purnama is planning to limit the age of a vehicle to a maximum of 10 years. Automotive analyst Suhari Sargo believed that the policy will benefit car producers. "More people will change their car, it will be profitable," he told Tempo on Sunday, January 25, 2015.

Moreover, 60 percent of car sales in Indonesia are centered on Java, especially in Jabodetabek area. "The [market] segment and the capacity are the strongest [in Jabodetabek]," he added. Suhari predicted that there will be a significant change in the vehicle market in Indonesia after the governor's plan takes effect. He said that car sales outside Java might be dominated by used cars.

However, Suhari added that Indonesia is not ready to implement vehicle's age restriction because the current infrastructure could not replace car usage in everyday activities in Indonesia. "We want to copy Singapore, but our infrastructure is different," he said.

He suggested that the government should evaluate the condition of a vehicle when vehicle owners extend their vehicle registration certificate (STNK). "If it is no longer usable, then you can prohibit its usage. There are 10-year-old cars still in good condition, but there are also newer cars in bad condition," he explained.

URSULA FLORENE SONIA | FAIZ NASHRILLAH