VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

President Joko Widodo opened the Indonesia International Motor Show (IIMS) Hybrid Automotive Exhibition 2021 at the State Palace in Jakarta last Thursday (15/4). In his remarks, the President said that the national automotive industry has risen. This can be seen from the increase in purchase orders for motor vehicle products, which reached 190 percent. He remarked that the increase in vehicle orders could not be separated from the various stimuli provided by the government, especially the relaxation policy on Sales Tax on Luxury Goods.

President Joko Widodo also mentioned the current purchasing manager index (PMI) figure, which has reached 53. In fact, before the pandemic, the Indonesian PMI figure reached 51 in normal times. He warned that this momentum must really be maintained. The President said this revival must not be disturbed again due to the Covid-19 pandemic.

Furthermore, he hopes that the production capacity of the domestic automotive industry can be increased by using higher local content. In addition, industrial players are targeting export markets. President Jokowi requested that the involvement of Micro, Small and Medium Enterprises be increased in the supply chain for the automotive industry, thereby bringing greater added value to the national economy.

President Joko Widodo also reminded the reform towards green technology and a green economy which will become the foundation, potential and strength in Indonesia. The use of renewable energy, such as B30 and B100, must also be continued. The development of electric cars must also be accelerated and it is hoped that it will become one of Indonesia's leading industries.

Meanwhile, Minister of Industry, Agus Gumiwang Kartasasmita is optimistic that the automotive industry can spur national economic recovery from the impact of the Covid-19 pandemic. This is because the automotive industry involves a lot of domestic business actors from upstream to downstream sectors.

Minister Agus Gumiwang added that in the Making Indonesia 4.0 program launched by President Joko Widodo in 2018, the national motor vehicle industry was targeted to become a global player. He reminded that despite being hit by the Covid-19 pandemic, the automotive industry was able to contribute 4.24 percent of non-oil and gas gross domestic product throughout 2020. Meanwhile, exports of automotive products for four-wheeled motorized vehicles or more, including their components, reached Rp65.99 trillion.