Jakarta (ANTARA) - President Joko Widodo (Jokowi) has pressed for greater involvement of micro-, small-, and medium-scale enterprises (MSME) in the automotive industry supply chain to bring larger added value to the national economy.

At the opening of an automotive exhibition -- the Indonesia International Motor Show (IIMS) Hybrid 2021 -- from the State Palace, Jakarta, on Thursday, the president noted that the automotive industry was one of the economic drivers that necessitated expedited development.

"This is because many domestic businesses are involved here, right from the upstream to the downstream sector. Hence, the involvement of MSMEs in the supply chain should be increased, and domestic added value must become a priority," Jokowi stated.

The head of state stressed on the significance of absorption of local workers in the industry and the improvement of public welfare, in addition to the reform toward green technology and green economy that will become the country's potential and strength.

"The use of renewable energy blends, such as B30 and B100, should be continued. The development of electric-based vehicles must be expedited, and this would be one of Indonesia's top industries," Jokowi remarked.

The president noted that the automotive industry had become the government's priority to increase investment in the sector.

"The government has attempted to improve the investment climate. We have approved the law on job creation. We also have an institution in investment management," he remarked, adding that it would offer a sense of certainty to investors to develop the domestic industry.

"We have tax relaxation to spur the purchasing power and automotive sales. Hence, there will be demand, and this will drive our automotive industry," Jokowi stated.

The Finance Ministry exempted the luxury sales tax for a three-month period from March 1 to December 31, 2021, in a bid to boost car sales and help the country add 0.9 to one percentage point to its economic growth rate this year. Related news: Auto industry leads as significant contributor to national economy
Related news: Government projects automotive industry to back national exports


Translator: Hanni Sofia, Sri Haryati
Editor: Suharto
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