The performance of the automotive industry was able to accelerate in the midst of the impact of the Covid-19 pandemic. Minister of Industry Agus Gumiwang Kartasasmita said automotive industry products in the country have been exported to more than 80 countries. Its value reaches Rp. 60 trillion. He explained that four-wheeled or more-wheeled motorized vehicles, including components produced by the country, were exported to Saudi Arabia, the Philippines, Brunei Darussalam, Bangladesh, Myanmar and Kuwait.
Exports of automotive products in the period January-September 2021, consisting of 207 thousand units of intact vehicles or CBU (completely built up) Rp. and 65 million pieces of components of Rp 21.86 trillion. "The potential of the automotive industry is currently supported by 21 industrial companies of four-wheeled vehicles or more with a total investment value of Rp. 71.35 trillion," Agus said in his official statement, Thursday (11/11). Agus said the Indonesian automotive industry currently has a production capacity of 2.35 million units per year and absorbs 38 thousand direct workers. More than 1.5 million people work along the value chain of the automotive industry sector. According to him, the automotive industry is able to make a significant contribution to the national economy. This makes the development of the automotive sector one of the priorities, according to the Making Indonesia 4.0 roadmap. The automotive industry has also received support from President Joko Widodo (Jokowi) in the form of granting relaxation of the Sales Tax on Government-borne Luxury Goods (PPnBM DTP). These incentives are expected to have a significant impact on the recovery of the automotive industry sector and increase the confidence of industry players.
The government noted that 319 Tier 1 component industry companies have obtained PnBM DTP. The incentives received by these companies are expected to boost the performance of Tier 2 and 3 component industries, most of which belong to the small and medium industry (IKM) category. "This will of course also have a positive impact on the recovery of the automotive industry sector, which has a wide multiplier effect for other industrial sectors," he said. Agus also emphasized that Indonesia is the largest market for automotive products in ASEAN. This is an opportunity for the development and industrialization of motorized vehicles, including those that are energy efficient and environmentally friendly in accordance with the growing global trend. “We strive to produce environmentally friendly vehicles, such as those based on EVs. We also still have the LCGC program, which will lead to a leap in hydrogen technology," he said.
Sources: https://katadata.co.id/agustiyanti/berita/618e1675e42b5/indonesia-ekspor-produk-otomotif-ke-80-negara-rp-60-triliun
