The performance of the automotive component industry shows a positive trend as a result of the Government-borne Luxury Goods Sales Tax incentive policy (PPnBM DTP). Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the growth of the automotive component industry in the January-September 2021 period rose 40 percent with an average utilization of 70 percent. "Meanwhile, component exports rose 61 percent from the previous 40 million components in 2020, to 65 million components in 2021," Agus said at the Gaikindo Indonesia Automotive Conference, Tuesday (16/11).
Agus said the impact of the PPnBM DTP program had empowered 319 tier 1 component industrial companies and boosted the performance of the tier 2 and tier 3 component industries, most of which fall into the category of small and medium industries (IKM). This can meet the requirements for the fulfillment of local components in vehicle production as much as 60%. Another impact of PPnBM policy is the growth of the transportation equipment industry in the third quarter of 2021 which reached 27.84%. He said double-digit growth was recorded by the transportation equipment industry for two consecutive quarters, where in the second quarter of 2021 the transportation equipment industry grew by 45.70%. "This will certainly have a positive impact on the recovery of the automotive industry sector, which has a very broad multiplayer effect for other industrial sectors," he said. The automotive industry is one sector that is able to contribute significantly to the national economy. Car sales in the domestic market in the January-September 2021 period reached 627,537 units. This figure has exceeded the total sales last year which reached 532,407 units. Car sales during January-September this year increased 68.7% compared to the same nine-month period 2020.
In addition, Indonesia's automotive products have been exported to more than 80 countries with a value of Rp 60 trillion. The export destinations for Indonesian automotive products include 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) valued at Rp. 37.65 trillion, and 62 thousand sets of CKD (completely knock down) or cars exported in a decomposed manner worth Rp. 0 .96 trillion. 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. "The fast growth of the middle class, as well as the low car ownership ratio of 99 vehicles per 1000 population, make Indonesia the largest market for automotive products in ASEAN," he said.
Sources: https://katadata.co.id/yuliawati/berita/6193374ca0105/berkah-insentif-ppnbm-industri-komponen-otomotif-tumbuh-40
