Indonesia has become automotive industry investment destination

Indonesia has become automotive industry investment destination

Minister Airlangga Hartarto. (ANTARA/Robert)

This is the reason why the automotive industry will continue to be pushed forward ..."
Cikarang (ANTARA News) - The country has become the automotive investment destination, with the national production target set at some 2.5 million units in 2020, Indonesian Minister of Industry Airlangga Hartarto stated.

"There are three big industries -- Mitsubishi Motor Krama Yudha Indonesia (MMKI), Suzuki, and Shanghai Wuling -- in this cluster. This indicates that Indonesia is a good investment destination for the automotive industry and offers the perfect momentum to accelerate the industrys development," Hartarto noted in his report while attending the opening ceremony of MMKIs new factory in Cikarang, West Java, on Tuesday.

According to Hartarto, the national automotive production market reaches 1.1 million units, with 200 thousand being exported.

Moreover, the industry has also employed a workforce of around three million in Indonesia.

Airlangga said the automotive industry has become one of the main sectors in the current national industry policy that contributes significantly to the gross domestic product (GDP).

In 2016, the automotive industry had contributed around 10.47 percent to the overall non-petrol GDP.

The contribution is the third largest on the list after the food and beverage industry, with 32.84 percent followed by the metal, computers, electronics, optics, and appliances industry, which contributed 10.71 percent.

"This is the reason why the automotive industry will continue to be pushed forward, so it can contribute more to the national economy," Hartarto remarked.

He pointed out that an economic growth of above five percent could benefit the industry amid the sluggish global economic growth.

Meanwhile, MMKI inaugurated a new factory in the Greenland International Center, Central Cikarang, West Java.

According to Hartartos statement, MMKI, with an investment of Rp7.5 billion, has a production capacity of 160 thousand units per year and employs a workforce of three thousand people.

(Reported by Agus Salim/L.A039*B019/Uu.Ian/KR-MBR/INE/KR-BSR/O001)