Why Japanese Car More Popular in Indonesia?

Indonesia, a country with 270 million population (4th largest) is a big market for business. Countries in Europe, America, and Asia are competing in this archipelago country. Many products exported to Indonesia but we will discuss specifically automotive industries.

Since the fall of Soekarno, Indonesia becomes Japan's market and big investment flow from Japan to Indonesia. Cars brand from Japan e.g Toyota, Suzuki, Daihatsu, Honda dominated the Indonesian market. They have been defeated Europe and America e.g Mercedez, BMW, Ford, etc. The question is Why Indonesian people more idolize Japan's Cars?

First, Japan's cars have a lower price than Europe or America's cars. Indonesian income is still low. The income per capita in Indonesia is about US$ 4300 per year. So, rationally, Japan's car more affordable than Europe's cars that categorized as luxury cars.

Second, it is still related to the income, where the treatment of Japan's car is easier than Europe's car. Europe's car with high technology often has a problem and the cost to fix it is very expensive. Moreover, it happened because spare parts usually imported from the origin.

Third, there is any relation between a little demand with an after-sale price. Europe's car has a falling after-sale price. Whereas Indonesian people want to buy a car that has a high after-sale price. That is unique, but it is the fact that most of the Indonesian desire that their car price did not fall after being used.

Fourth, it is about high taxes. Because, cars like BMW, Mercedez are categorized as a luxury car and has a very expensive tax. As an illustration, Europe's car tax can double and even triple form Japan's car. However, Europe's car has comfort and luxury for its users. This thing that not owned by Japan's car.