The sector has contributed Rp99.16 trillion of investment and with total production capacity having reached 2.35 million units per year and absorbed 38.39 thousand workers.
Jakarta (ANTARA) - The automotive industry has become a leading sector that contributed significantly to the national economy, with 22 four-wheeled vehicle manufacturers nationwide, according to Industry Minister Agus Gumiwang Kartasasmita.

"The sector has contributed Rp99.16 trillion of investment and with total production capacity having reached 2.35 million units per year and absorbed 38.39 thousand workers," Kartasasmita noted in a statement here on Friday.

Furthermore, the minister pointed to 26 two-wheeled and three-wheeled vehicle manufacturers in the country, with a total investment of Rp10.05 trillion, production capacity of 9.53 million units per year, and 32 thousand workers absorbed.

"The automotive sector has had a significant impact on more than 1.5 million people working in the industry's production chain," he stated.

On account of its strategic and important role in the country's economy, the automotive industry has been included in the Making Indonesia 4.0 road map to be accorded priority in its development.

"Domestic vehicle products have penetrated the export market in 80 countries. During 2020, exports of Completely Build-Up (CBU) cars had reached 232.17 thousand units worth Rp41.73 trillion," the minister stated.

Moreover, 53.03 thousand Completely Knocked Down (CKD) cars worth Rp1.23 trillion and 61.2 million pieces of spare parts worth Rp17.52 trillion were shipped.

"Under the Making Indonesia 4.0 Program, the national automotive industry is targeted to become a global player," he noted.

Indonesia will serve as a hub for vehicle exports, both for fuel oil-based vehicles or internal combustion engine (ICE) vehicles and electrical vehicles (EV).

The minister reiterated that in order to boost productivity, sales, and competitiveness of the national automotive industry amid the COVID-19 pandemic, the government had launched some stimulus for the sector.

"The policy is aimed at ensuring that the automotive industry recovers and records growth, so that it would make a significant contribution to the national economy," Kartasasmita explained.

The ministry has also supported the Indonesia International Motor Show (IIMS) held virtually in 2021 to help promote the country's automotive industry.

The virtual exhibition of IIMS 2021 is expected to emerge as a forum to introduce new technology in the automotive industry in the country.

The exhibition is projected to serve as a new barometer for international-class automotive shows and drive the country's automotive industry, Kartasasmita affirmed.
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Translator: Sella P Gareta, Sri Haryati
Editor: Suharto
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