The automotive industry has played a significant role in supporting the national economic growth. This is demonstrated in the achievement of 26,658 unit sales of four-wheeled motor vehicles, valued at over IDR 11 trillion, at the GAIKINDO Indonesia International Auto Show (GIIAS) 2022. The Minister of Industry also commended GIIAS for influencing a significant increase in the trend of interest among the public to own electrified technology vehicles (xEV), whether hybrid or battery-based electric vehicles. In GIIAS 2022, out of the total cars sold, approximately 1,594 units were electric vehicles. At that time, the exhibition, attended by 385,487 visitors, featured 25 brands of passenger and commercial vehicles, 15 brands of two-wheeled vehicles, and several bodywork industries that also participated. The Indonesian automotive sector has undergone remarkable changes, becoming a key player in the regional market and a significant contributor to the national economy. The automotive sector in Indonesia has not only created job opportunities but also provided significant economic prospects for both domestic and foreign companies. The automotive industry has acted as a catalyst for innovation, research, and development.
Currently, the strength of the automotive industry in Indonesia is supported by 21 four-wheeled motor vehicle manufacturing companies, with a total production capacity of 2.35 million units per year. Furthermore, this sector has been able to generate significant foreign exchange through its export achievements. Hence, the Ministry of Industry fully supports the organisation of GIIAS 2023 as a prestigious international event showcasing the latest advancements in automotive technology and products in Indonesia. In an effort to boost the national economy, the Ministry of Industry is committed to continuously driving the industry sector to invest in research and development, promoting inclusive growth, and advocating for environmental sustainability. The government continues to strive towards achieving electric vehicle development targets. For industries dedicated to developing or expanding electric vehicle production facilities in Indonesia, the program includes tax incentives and exemptions, duty-free imports, and other levies. This initiative has yielded positive results, as numbers of direct investment commitments will soon be realised.
Source: https://kemenperin.go.id/artikel/24242/Menperin:-Industri-Otomotif-Nasional-Mampu-Penuhi-Standar-Global
