Tire industry stagnating amid global economic crisis

Jumat, 02 Maret 2012 | 08:05

Tire industry for four-wheeled vehicle showed unsatifying performance in this year as the total tire sales was 3.99 million unit.Based on the data of Association of Indonesia Tire Companies (APBI), total tire sales in early this year which was only 3.99 million units or dropped 9.3% compared with December 2011, 4.4 million units.

The decline was not only happened in total sales, but it also occured in export volume. Next month, the tire export of 11 APBI members was 2.63 million units. The number was smaller than the previous month of 2.99 million units.

Thus, the export value declined significantly from US$123.99 million in December 2011 to be US$109.95 million in January 2012.

Related with the decline in domestic sales and export, the last month’s production was 4.18 million units or down 4.5% from previous 4.38 million units.

General Chairman of APBI Azis Pane said the decline on the eary year’s performance was influenced by the global economic crisis. He predicts the global crisis will be last until QII/2012.

Now, according to Azis, two countries with the great economic growth, China and India is on soft landing as they will face political issue on presidential election.

“They have to be careful in securing their countries since if there is any turnmoil, then it will influence their economy,” said Azis yesterday.

The government of Indonesia and stakeholders, he said, are also responsible to secure domestic market. One of them is revising the national standard regulation on tires, which will be valid on March 1, 2012.

The revision on the national standard of tire, he said, aims at enhancing the quality of the local tires to compete with import tires in domestic market. (T03/msw)

By Yusuf Waluyo Jati, Elvani Harifaningsih, Hadijah Alaydrus
Source  http://en.bisnis.com