Monday, 23 November 2020 05:53

The Automotive Sector is the Largest Contributor of Indonesian Product Exports

Secretary General, Ministry of Industry, Achmad Sigit Dwiwahjono, said the automotive industry is one of the major contributors to export activities. There are at least 19 four-wheeled vehicle industries in Indonesia with an investment of Rp. 93 trillion for a production capacity of 2.3 million units per year. "The automotive industry is one of the mainstay sectors which has quite a large contributor to national growth," said Sigit in the Online Public Dialogue of the Ministry of Transportation entitled Patimban Port and National Economy Geliat, Jakarta, Friday (20/11).

Indonesia's exports of motor vehicle products have penetrated the market in 80 countries in the world. In the January-September 2020 period, the export of CBU vehicles was 155 thousand units or IDR 28 trillion. Exports of CKD vehicles were 34.7 thousand sets or Rp. 1 trillion. Meanwhile, the components are 40 million pcs or Rp. 15.2 trillion. "Domestically produced motorized vehicle products have taken the export market to more than 80 countries in the world," he said.

Sigit said that the automotive industry sector absorbs a workforce of up to 38 thousand people. In this ecosystem there are 1.5 million people working. For information, the manufacturing sector contributes 20 percent to GDP. This sector employs a workforce of around 17.5 million people or around 13.6 percent of the total workforce in Indonesia. In addition, industrial exports contributed 82.5 percent to total national exports. In the January-September 2020 period, the export value of the industrial sector was USD 117.19 billion. Meanwhile, the realization of investment in this industry in the same period was IDR 201 trillion.

The government projects that Patimban Port in Subang Regency, West Java, can begin to be used for export / import and distribution of automotive including cars in December 2020. Minister of Transportation Budi Karya Sumadi said, Patimban Port is planned to be fully completed in 2027. So that it can boost economic activity in West Java and its surroundings. "We hope that the developing industries in West Java and Central Java will use Patimban as the main port for export / import and distribution throughout Indonesia. And of course it will be able to make the economy develop, even nationally provide an alternative to export / import goods," he said in a webinar with Liputan6.com, Monday (16/11/2020).

According to him, the location of Patimban Port is strategic to support the development of the automotive industry sector which is scattered around Karawang, West Java. With the presence of Patimban, it will make it easier for the automotive industry to export / import. In general, he continued, Patimban Port is expected to complete a number of works by the end of 2020. Including a container terminal and a vehicle terminal (car terminal). "Currently, Patimban will complete the works that God willing, December can be used. Namely 35 ha containers, or for a capacity of 250 thousand TEUs per year," he explained. "And for vehicles of 25 ha with a car capacity of 218 thousand CBU," he added.

Minister Budi stated that this condition clearly provided a new movement for the world of logistics. In terms of shipping distance, it will also be cut compared to before, which had to go all the way to Riau. "This is of course the hope that in December we will use it for the first time for the car terminal, to export / import cars, and to distribute cars throughout Indonesia," he concluded.

Source: https://www.liputan6.com/bisnis/read/4413631/sektor-otomotif-penyumbang-terbesar-ekspor-produk-indonesia

 

 

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