VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Industry Ministry is seeking to strengthen cooperation between Indonesian and Japanese automotive industry players through the Automotive Spare Parts Business Forum in Nagoya, Japan.

"It is great to see so many Indonesian and Japanese companies participating in the event, indicating that there is a great interest in the (business automotive) opportunities," Industry Minister Agus Gumiwang Kartasasmita remarked while attending the forum, according to a statement received here on Tuesday.

Indonesian small and medium industries (IKMs) have the potential to supply 4,500 of the 30 thousand different kinds of auto parts, the minister noted.

However, currently, Indonesian IKMs are only supplying around 900 kinds of auto parts, hence efforts are required to increase their supply.

"The government is committed to promoting the IKMs’ auto parts products and helping them to play a strategic role in the global automotive supply chain," the minister said.

The quality of Indonesian IKMs’ products is excellent since they have obtained various international certifications, such as ISO 9001, ISO 14001, and ISO 18001, he added.

The automotive industry has grown well at 14.2 percent in the first quarter of 2022, exceeding the average national economic growth of 5.01 percent, he noted.

The automotive industry can directly absorb up to 38 thousand workers. Furthermore, the sector can absorb an additional 1.5 million workers along its value chain.

Indonesia is seeking to become a global automotive player as well as an export hub for fuel-based vehicles and electric vehicles.

"We believe that collaboration of all stakeholders is very important for increasing production efficiency and product competitiveness through the implementation of Industry 4.0," Kartasasmita said.

The government is committed to creating a conducive business climate by synchronizing the regulations for the automotive sector as well as making Indonesia a production base, he added.

"Indonesia is ready to implement the zero-emission policy in accordance with the (government’s) commitment at COP21 Paris to reduce greenhouse gas emissions by 29 percent by 2030 as well as (the commitment) at COP26 Glasgow to continue developing an electric vehicle ecosystem," he said.

Several regulations have been issued to expedite emission reduction and o attract investment in the automotive industry, such as Presidential Regulation Number 55 of 2019 on the Acceleration of the Battery Electric Vehicle Program for Land Transportation as well as Industry Minister’s Regulation Number 36 of 2021 concerning Four-Wheeled Motorized Low-Carbon Emission Vehicles (LCEV).  (Antaranews)