The Coordinating Minister for the Economy Airlangga Hartarto said that the automotive industry in Indonesia has the potential to grow rapidly in the future. This is based on the achievement of the utilization of the motor vehicle industry in terms of production in October 2022 which recorded 69.20%, higher than during the pandemic which averaged only 40%. "Indonesia is the largest market for motorized vehicles in ASEAN. However, the Car Ratio R4 in Indonesia is still relatively low at 99 cars per 1,000 population, indicating that the automotive industry still has great potential for growth in the future," said Airlangga. Airlangga said 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, Monday (21/11).
Going forward, the industrial sector is expected to be able to continue to grow and this is reflected in the Indonesian Manufacturing Purchasing Manager Index (PMI) which has again expanded to a level of 51.8 in October 2022 or continues an expansive trend for 14 months in a row. Meanwhile, based on Gaikindo data, in October 2022 on a wholesale basis from factories to new car dealers, there were 93.19 thousand units, a growth of 23.37% (yoy) when compared to October 2021. Meanwhile, the potential demand for Electric Vehicles (EV) or electric vehicles in the world is also expected to continue to increase and reach around 55 million EV units by 2040. To seize this opportunity as well as support the agenda of the Conference of Parties on Climate Change (COP21), Indonesia has issued Presidential Regulation (Perpres) Number 55 of 2019 concerning the Acceleration of Battery-Based Electric Motorized Vehicles (KBL BB) / BEV for Road Transportation. Airlangga said that various derivative regulations from the Perpres had also been issued in order to accelerate the development of the KBL-BB ecosystem in Indonesia. So it is hoped that these electric-based vehicles can support the government's commitment to the energy transition. "Hopefully this step in producing cars with electrification technology can provide benefits for economic resilience and support the Net Zero Emission commitment," said Airlangga. In addition, the Toyota Group has prepared a large area for the development of the electric car. In addition, an investment of USD 2 billion or around IDR 28.3 trillion will be prepared for the next five years. Then, the Toyota Group has also set up the xEV Center "The First Electrification Learning Center" as a public advocacy for electrification. This facility will be upgraded as a capability center to prepare Indonesia's future human resources and expertise towards the electrification era which is in line with Government policies. "We congratulate PT TMMIN for the first production of a local Indonesian electrification vehicle for the world, namely the Toyota Kijang vehicle," he said. "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," concluded Airlangga. Also present at this event included the Minister of Industry, Secretary of the Coordinating Ministry for the Economy, Directorate General of Metal, Machinery, Transportation Equipment and Electronics of the Ministry of Industry, CEO of Asia Region for TMC and President of TMAP, President Director of TMMIN, and Deputy President Director of TAM.
