The Ministry of Industry (Kemenperin) has reported positive performance in Indonesia's transportation equipment industry, which has become the backbone of the industrial GDP in 2023 with a growth rate of 7.63%. This was revealed by Acting Director General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE), Putu Juli Ardika. According to him, the transportation equipment industry significantly contributes to the national economy. “The transportation equipment industry has been the main driver of industrial GDP growth in 2023, with a growth rate of 7.63%, higher than the overall industrial sector growth,” said Putu on Wednesday (10/7/2024). He added, “This growth is largely due to the contribution of the automotive sector.” Kemenperin recorded that in 2023, domestic sales of two-wheeled vehicles reached 6.2 million units, with exports amounting to 570,000 units. Meanwhile, car exports totaled 506,000 units for the Completely Built-Up (CBU) category and 65,000 units for the Completely Knocked Down (CKD) category.
However, over the past decade, domestic car sales have remained steady at around 1 million units, necessitating strategic measures to boost these figures. The trend of increasing car exports is evident, with 194,000 units exported in 2016 rising to 506,000 units in 2023. Currently, several global automotive manufacturers are targeting Indonesia as a production base and export hub. “Although domestic sales are stagnant, production continues to increase to meet export market demands. This indicates that our automotive industry remains competitive,” Putu explained. He also noted, “In the past five years, new automotive industries have been added, including Hyundai, Chery, Neta, Citroen, and MG.” This positive trend underscores the resilience and growth potential of Indonesia's transportation equipment industry, positioning it as a key player in the global automotive market.
