Patimban Port expected to raise automotive industry's competitiveness

Patimban Port expected to raise automotive industry's competitiveness

Secretary General of the Industry Ministry Achmad Sigit Dwiwahjono. ANTARA/HO-Industry Ministry

Jakarta (ANTARA) - The Industry Ministry declared positively that Patimban Port will drive competitiveness of the national automotive industry, with its role as the main gate for Indonesia's exports and imports.

"We believe that Patimban Port in Subang District, West Java, to be inaugurated by President Joko Widodo in the near future, has a crucial role in developing the national automotive industry," Secretary General of the Industry Ministry Achmad Sigit Dwiwahjono noted in a statement here on Saturday.

Patimban Port is designed to serve as the main hub for automotive production in Indonesia and its exports to the global market.

The port’s operations are envisioned to stir the industry's optimism on national economic recovery through heightened activities in exports and imports as well as domestic production and consumption, he stated.

"We called on all stakeholders in the automotive industry, from the manufacturer, component and spare parts producers, and raw material industry to utilize Patimban Port as a strategic partner in export-import loading and unloading activities, so that the port can become an international trade hub," he remarked.

Dwiwahjono was upbeat about the port being able to boost competitiveness of Indonesia's automotive industry as a leading sector, with major contribution to the country's economy.

"Currently, there are 19 vehicle manufacturers in Indonesia, with investment totaling Rp93.22 trillion and annual production capacity of 2.35 million units. It absorbed 38 thousand direct workers and more than 1.5 million workers in the industry's production chain," he pointed out.

Indonesia's automotive products have penetrated the export market in over 80 countries. During the period from January to September 2020, the exports of completely built-up cars had reached 155.25 thousand units, worth Rp28.20 trillion; exports of cars in the completely knocked down format, reaching 34.72 thousand units, or Rp1.10 trillion; and shipping of 40.36 million pieces of component, worth Rp15.20 trillion.

"In the program of Making Indonesia 4.0 launched by President Joko Widodo on April 4, 2018, the national automotive industry is targeted to become a global player and export hub for automotive products, both the internal combustion engine-based vehicle and electric-based vehicle," he stated.

The government has also outlined a target for the production of electric vehicles to reach 20 percent of the total automotive production in 2025, comprising Hybrid Vehicles, Plug-in Hybrid Vehicles, Battery Electric Vehicles, and Fuel Cell Electric Vehicles.

The target will bolster the government's endeavors to lower greenhouse gas emissions by 29 percent in 2030; draw investors in the main component industry, such as battery, electric motor, and power control unit; and encourage downstreaming of the battery raw material industry in Indonesia. Related news: President calls for expediting development of Patimban Port
Related news: Patimban Harbor access road to be ready by October-end: Minister


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