In the third quarter of 2022, the Indonesian economy grew positively by 5.72% (yoy). Indonesia is even called 'the bright spot in the dark' because it has growth above the average global economy. This achievement was also supported by the non-oil and gas processing industry sector, especially the automotive sector. With an increase of 4.88% yoy, the non-oil and gas processing industry contributed 16.10% to national GDP. Meanwhile, the automotive sector also recorded growth above national economic growth. The Coordinating Minister for the Economy Airlangga Hartarto explained that the transportation equipment industry is a sector that is part of the non-oil and gas processing industry, which has grown quite significantly since the second quarter of 2021. This sector was able to continue the recovery trend with an increase of up to 10.26% in the third quarter of 2022. From the production side, he said, the utilization of the motor vehicle industry in October 2022 recorded an achievement of 69.20%. This value is said to be higher than during the pandemic, which was an average of only 40%. Airlangga hopes that in the future this sector can continue to grow. This is by looking at the Indonesian Manufacturing Purchasing Manager Index (PMI), which experienced another expansion to a level of 51.8 in October 2022. Or continuing an expansive trend for 14 consecutive months. "Indonesia is the largest market for motorized vehicles in ASEAN. However, the Car Ratio R4 in Indonesia is still relatively low, namely 99 cars per 1,000 population, indicating that the automotive industry still has great potential for growth in the future," said Airlangga in a written statement, Monday (21/11/2022).
He conveyed this at the event 'The First Production of Local Electrified Vehicle: From Indonesia to the World' held by PT Toyota Motor Manufacturing Indonesia (TMMIN) in Karawang. Data from Gaikindo shows that in October 2022 on a wholesale basis from factories to new car dealers there were 93.19 thousand units. Or an increase of around 23.37% (yoy) when compared to October 2021. Meanwhile, based on Bloomberg, the potential demand for Electric Vehicles (EV) in the world is also predicted to continue to rise and reach around 55 million EV units in 2040. Airlangga said the government had issued Presidential Regulation (Perpres) Number 55 of 2019 concerning Acceleration of Battery-Based Electric Motorized Vehicles (KBL BB)/BEV for Road Transportation. These rules were made in order to seize this opportunity as well as support the agenda of the Conference of Parties on Climate Change (COP21). "Various derivative regulations from the Perpres have also been issued in order to accelerate the development of the KBL-BB ecosystem in Indonesia. Hopefully this step in producing cars with electrification technology can provide benefits for economic resilience and support the Net Zero Emission commitment," Airlangga explained. In addition, he said, the Toyota Group has prepared a large area for the development of the electric car. Coupled with an investment of US$ 2 billion or around Rp. 28.3 trillion which will be prepared for the next five years. On the other hand, he said the Toyota Group had also prepared the xEV Center "The First Electrification Learning Center" as a public advocacy for electrification. This facility aims to provide provisions for Indonesia's future human resources and expertise towards the electrification era, which is in line with government policies. "We congratulate PT TMMIN for the production of the first local Indonesian electrification vehicle for the world, namely the Toyota Kijang vehicle. Hopefully this will help encourage the creation of a sustainable EV ecosystem. I also hope that later other types of cars, both SUVs and MPVs, can use EV technology, " he snapped.
