Speaking at the Gaikindo Indonesia International Auto Show (GIIAS) 2023 Power Dinner held on Monday (07/08/23), Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, stated that Indonesia’s automotive industry has contributed significantly to the national economy and has become a key player in the region’s automotive market and one of the busy automotive hubs in the ASEAN region, according to reporting by Antara News.
“With sustainable infrastructure development, technological breakthroughs, innovations, the growth of the middle class, and the increasing demand for cars, Indonesia has become a busy automotive hub in Southeast Asia,” the minister said in a statement received by Antara News on Tuesday.
Indonesia has 21-four-wheeled motor vehicle industry companies, with a total production capacity of 2.35-million units per year, he said.
The automotive industry has also absorbed 38,000 people into the workforce, with more than 1.5-million individuals working in the automotive supply chain from Tier-1 to Tier-3.
“In fact, this sector is able to provide significant foreign exchange through its export achievements. In addition, the industry’s rapid expansion has paved the way for major investments, resulting in a strong ecosystem of manufacturers, suppliers, dealers, and service providers,” the minister explained.
Kartasasmita reaffirmed the ministry’s commitment to continue to spur the industrial sector by investing in research and development (R&D), encouraging inclusive growth, and promoting environmental sustainability, say Antara News.
“We actively encourage the public and private sectors to collaborate to make the Indonesian automotive industry have the most innovation, efficiency, and competitiveness,” he stated.
In Q2/ 2023, the automotive industry grew 9.66-percent, higher than the performance of the non-oil and gas processing industry that grew 4.56-percent year-on-year (yoy).
The government is also striving to develop electric vehicles. The Industry Ministry is optimistic that the sales of electric vehicles in Indonesia would increase dramatically.
Antara News report that in 2022 alone, at least 10,000 electric vehicles were sold in Indonesia.
Source: Antara News