TEMPO.CO, Jakarta - Suzuki Indonesia has decided to reduce imports from India and concentrate on boosting the sales of local assembly. The company said that by focusing on local products, Suzuki could avoid the risk of exchange rate fluctuations.
According to Suzuki Indomobil Sales' (SIS) 4W marketing director, Donny Saputra, this is because of the high level of domestic content level (TKDN) of local Suzuki products, which on average are above 85 percent.
"Overall, our strategy in 2019 is to focus on selling the products we make in Indonesia, to minimize the various risks from relying on imported products," he told Bisnis Indonesia, Wednesday, 22 January.
In addition, this strategy allows Suzuki to better control the cost of producing and shipping throughout Indonesia. Donny said that without having to wait for the import process, the process of sending units is relatively better monitored.
"Finally, to maintain prices. By relying on local products, we won't be able to raise prices arbitrarily," he said, adding that the strategy is also aimed at avoiding global impacts, such as the US-China trade war.
The Suzuki Baleno, Ignis, and SX4 are all imports from India. The total sales of Suzuki products from India in 2019 reached 11,399 units, down 33.53 percent from 2018's sales of 17,148 units.