As one of the
government’s appreciation to the automotive industry and component industry
that have entrusted their investment, the government no only strives to create
a conducive business climate, but also to conduct strict monitoring of imported
products of interior quality. According to Minister of Industry, Saleh Husin,
entrepreneurs, both engaged in automotive of component manufacturing, need not
worry. Because it is the government’s commitment to protect them from the
invasion of imported components that do not meet the standards.
In a discussion on automotive
industry in Jakarta, Monday (August 10), Minister of Industry, Saleh Husin, pointed
out that the surveillance conducted is not just for the sake of investment, but
also to maintain the existence of workers in the motor vehicle industry as well
as for consumer protection. This means that the double impact that occurred
here are broad. “For that we keep the domestic after-market, which is very
large, in order to be optimally utilized by the domestic component industry by
tightening of supervision over the circulation of low-quality products from
abroad,” he said.
The chance of the absorption of
domestic motor vehicle and component products, according to Minister of
Industry, can be optimized by meeting the demand for automotive products for
the government and state enterprises. It becomes a stimulant to show domestic
production in order to support national demand.
The Ministry of Industry recorded
that domestic vehicle production has been exported to more than 80 countries.
Total exports of completely built up (CBU) vehicles in 2010 was 85,796 units,
whereas in 2014 at 202,273 units. Total exports from January to June 2015
reached 107,448 units. While, car production in the same period reached 577,507
units. Likewise, the rate production, if in 2009, total car production reached
464,816 units, in 2014 increased to 1,298,523 units.
In the future, car production in
2020 is estimated to reach 2.5 million units, with exports in 2020 in 2020
expected to reach more than 600 thousand units. While, production in 2025 is
estimated to reach 4.1 million units. Minister of Industry, Saleh Husin, was
also optimistic that the national automotive industry continued to improve. One
effort to promote this is by holding Gaikindo Indonesia International Auto Show
(GIIAS 2015) in August 20-30, 2015 in Indonesia Convention Exhibition (ICE),
BSD City, South Tangerang. “The exhibition is an event for the global industry
to see that the Indonesian domestic market is promising, as well as an
opportunity to demonstrate the ability as an export-oriented automotive
production base,” Saleh Husin added.
Export Orientation
Indonesia’s automotive industry is
working hard to compete with Thailand in the production and export of
four-wheeled vehicles and in strengthening the competitiveness of the national
automotive industry, so as not to be eroded by imported products. Minister of
Industry, Saleh Husin, revealed that these two things are to win the
competition ahead of the implementation of ASEAN Economic Community by the end
of 2015. “Indonesia has become the 2nd largest automotive
manufacturer in ASEAN after Thailand. We should be able to overtake because our
industry is able to fill the export markets besides our domestic market
potential, which is also great, “said industry Minister Saleh Husin.
Currently, Thailand has been
producing about 2.5 million vehicles a year where 50 percent is exported.
Indonesia followed with a production capacity of 1.2 million units per year and
still oriented to the domestic market. While, the potential of the domestic
market. While, the potential of the domestic market is still supported by the
middle class population. According to data from AC Nielsen in 2013, the growth
rate of middle class population in ASEAN in 174%, the highest among all ASEAN
in 2012-2020 was 110.5%, while in Indonesia reached 174%, the highest among all
ASEAN countries. “This indicates that domestic demand for motor vehicles will
increase. At the same time, it strengthens our optimism to change the paradigm
into exporter and to become one of automotive product bases in ASEAN and the
world, “he said.
Program of development of automotive
industry, in the future, must be directed and carried out within the framework
of: first, balancing of competition and import of vehicles, especially from
ASEAN; second, encouraging investment; third, encouraging the independence of
Indonesia in the field of automotive technology through mastery of technology
and capacity building of human resources; and fourth, development and
protection of domestic market as basis for developing an independent automotive
industry, which is globally competitive.
In addition to providing a means of
transportation of people and goods, the automotive industry also plays a role
in providing employment. Based on data from the Ministry of Industry, labor
absorption in this sector reached about 1.3 million people, which is absorbed
in the assembly industry, component industry, and other related economic
activities, such as workshops and after-sales network.
This is the basis so that the
automotive industry serves as one of the priority industries in the national
industrial policy. The automotive industry is also included in the group of
leading industries of the future. Development of automotive industry in the
future should be directed at improvement of competitiveness fundamentally and
sustainable by utilizing all available automotive industry lies in the efforts
to mobilize and organize all productive resources potentials in order to
produce motor vehicles, which are innovative and competitive, in accordance
with market demand.
On the same occasion, Director
General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE)
of the Ministry of Industry, I Gusti Putu Suryawirawan, stated that the
progress of the national automotive industry requires strong supporting
industries, such as component industries. “The domestic component industry must
be strong, supporting industries, such as component industries. “The domestic
component industry must be strong, so there will not be a lot of imports”. It
can encourage the automotive industry roadmap, which targets to achieve car
production at around 2.5 million units by 2020.
Therefore, the Director of Small and
Medium Enterprises (SME), Euis Saedah, added that the Ministry of Industry has
facilitated small & medium component industry to enter the global value
chain system, through increased mastery of advanced technology and improvement
of quality management system implementation and facilitation for certification.
“The challenges faced by SMEs in order to compete include improvement of quality
and availability of raw materials in the country, competence of human
resources, improvement of technology and standardization, and expansion of
market access,” he explained. (E)
Business News - August 14, 2015
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