Automotive industry is backbone of industrialization

... In the automotive industry, it is the other way round - it is an upstream industrial development... "
Jakarta (ANTARA News) - Vice President Boediono said the automotive industry would be the backbone of industrialization in Indonesia because of its traits that meet the three pillars of industrial development in the country.

"Firstly, it is about adding value to products and development of downstream industries. We no longer want to sell raw materials. In the automotive industry, it is the other way round - it is an upstream industrial development," he said, during the opening of the Indonesian International Motor Show (IIMS) 2013 on Thursday.

Secondly, he said, industrialization is directed at maximizing the impact on the development of domestic industries or the multiplier effect.

The multiplier effect will increase the number of jobs and absorb more people, he added.

He said the automotive industry has a huge multiplying effect in view of the supporting industries it would require.

Thirdly, the vice president mentioned that industries have now become the world`s supply chain, in which a country could become a provider of a certain component for the global production of a product.

He said these three pillars of industrialization could be developed in Indonesia in view of the country`s human and natural resources as well as the huge market.

He added that there is ample scope for the development of the automotive industry, with regard to the second and third pillars.

On the occasion, the vice president took an opportunity to view the exhibition arena, which is located on a 75 square meter area, and visit some booths.

A total of 36 car makers and 276 supporting industries participated in the IIMS 2013, with the theme "Smart Vehicle Mobility."

The opening ceremony was also attended by Industry Minister MS Hidayat and Vice Governor of Jakarta Basuki Tjahaja Purnama. 

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