"In the roadmap for the development of the motor vehicle industry, the government has set the target of motorcycle production at 10 million units for 2025, with an export target at one million," Industry Minister Agus Gumiwang Kartasasmita said in a statement released Friday.
Based on the roadmap Making Indonesia 4.0, the automotive industry is one of the manufacturing sectors of which development receives priority in the face of the fourth industrial revolution known as Industry 4.0.
While opening the Indonesia International Motor Show (IIMS) Motobike Expo 2019 in Jakarta, the minister noted that the production and sales of motorcycles averaged 6.5 million per year between 2010 and 2018.
The growing motorcycle production and sales has had a positive impact on the development of the domestic spare parts industry, he said.
"Motorcycle production between January and October 2019 reached 6.2 million units, with domestic sales touching 5.5 million units and exports touching 682 thousand," he said.
The export markets for Indonesian motorcycles include the Philippines, Thailand, Bangladesh, Cambodia, Malaysia, Vietnam, Japan, West Europe and Latin America.
Nearly 20 percent or two million of the total motorcycle production in 2025 will be electric motorcycles, he further said. The number is expected to increase by 2029 and Indonesia is projected to become a center for electric vehicle production in Southeast Asia by 2030.
"To achieve the target, we have aggressively invited automotive producers to carry out their production activities in Indonesia. The government believes that Indonesia has many advantages in the automotive sector so the target for 2030 is not something impossible to achieve," he said.
Related news: Metamorphosing Indonesia's economy toward competitive manufacturing
Related news: President Jokowi encourages export of automotive products