President Joko Widodo encouraged the domestic automotive industry to continue to work hard and spawn innovation. He hopes the Indonesian automotive market can be controlled by the domestic automotive industry.
"Do not let our large country market be controlled by imported cars. It must be controlled by cars produced in our own country," the president said after reviewing the 2018 Gaikindo Indonesia International Auto Show at ICE BSD City on Thursday. August 2, 2018.
To realize this, the committed government will continue to support and assist the national automotive industry. One of them was when the President met with Vietnamese Prime Minister Nguyen Xuan Phuc to resolve the problem of Indonesia's automotive production exports to Vietnam.
"Yesterday I met with the Prime Minister of Vietnam, I said bluntly about the obstacles to our automotive exports. It turned out that it could be resolved. If there are more problems, I will discuss again with the Vietnamese Prime Minister," he said.
In addition, the government is also preparing various incentives for the national automotive industry. A number of tax breaks are being considered for the automotive industry that invests in activities such as vocational training for workers and others.
"Including tax holidays that are much more aggressive, tax allowances, and those under study, super deductions, for taxes where company costs for activities such as vocational training can be cut 200 percent of taxable income. This will be huge but still in a study at the Minister of Finance, "he said.
Regarding innovation, the President said that currently Indonesia needs an innovation in the form of implementing 20 percent biodiesel or B20 by bringing more environmentally friendly vehicles. Some countries are said to have succeeded in implementing such a policy.
"Brazil in 1970 was able to implement a 100 percent bioethanol vehicle made from local sugar cane products. How come we who have millions of tons of oil palm production cannot solve this?" the President said.
With the implementation of B20, the government has calculated foreign exchange savings of almost USD6 billion. In addition, the price of Indonesian palm oil will also be raised to USD100 per ton.
"The price of crude oil is USD70 per barrel and assuming an increase in the absorption of biodiesel will raise the price of palm oil to USD100 per ton. This is a huge jump. If we can implement it, the country will save foreign exchange of USD5.98 billion so we will concentrate there so this process will follow me continuously, "he said. ( biro pers )
When opening the 2018 Gaikindo Indonesia International Auto Show automotive exhibition on ICE BSD City today, Thursday, August 2, 2018, President Joko Widodo welcomed the presence of a rural vehicle called Rural Multipurpose Mechanical Transport (AMMDes). The multipurpose vehicle of the nation's work is designed to improve the economic productivity of rural communities.
"I welcome AMMDes, Rural Multipurpose Mechanical Transport, which we will launch today," said the President.
The presence of this rural vehicle will also have a multiplier effect on other industries. At least 70 domestic component industries are involved in the production of rural vehicles.
"This is a type of vehicle but there is a lot to do with the upstream industry. It is reported that more than 70 domestic component industries are ready to become suppliers of this AMMDes component," he said.
Basically AMMDes functions as a means of transportation and transport that can be combined with various post-harvest processing tools. In addition, this vehicle can also be combined with several supporting equipment such as generators for lighting, rice grinder, and water pumps for rural rice irrigation by placing the components in the back of the vehicle.
After officially opening the exhibition, the Head of State went straight to the booth where the multipurpose vehicle was exhibited and had boarded one of the AMMDes on display.
"In addition to increasing production and productivity in the villages, this can also solve many problems in the village both in the form of water, mobility, dryers and rice mills in a small form so that mobility in the fields and villages can be even better , "said the President commenting on the rural vehicle.
The development of the AMMDes has been monitored long ago by President Joko Widodo. During a working visit to Klaten Regency, Central Java, in September 2017, the President had visited the Kiat Motor factory which had been known through Esemka products. There, the President witnessed firsthand the development of rural vehicles which were then still called Mahesa.
"The government's task is to give encouragement so that ideas like this can enter the market," the president said at the time. ( biro pers )
When opening the automotive exhibition Gaikindo Indonesia International Auto Show 2018 at ICE BSD City today, Thursday, August 2, 2018, President Joko Widodo welcomed the presence of a rural vehicle called Rural Multiguna Transportation (AMMDes). The multipurpose vehicle of the nation's work is designed to improve the economic productivity of rural communities.
"I welcome the AMMDes, Rural Multiguna Mechanical Transportation, which we will launch today," the President said.
The presence of this rural vehicle will also have a multiplier effect on other industries. At least 70 domestic component industries are involved in the production of rural vehicles.
"This is one type of vehicle but the relationship with the upstream industry is abundant," he said.
The Indonesian government is formulating a number of strategies, including implementing a regulation immediately on the use of a 20 percent biodiesel mix (B20) to save foreign exchange earnings, a minister said. The government has adopted several programs to save foreign exchange earnings, Industry Minister Airlangga Hartarto told the press, after a limited cabinet meeting held at the Bogor Presidential Palace, on Tuesday
The meeting, led by President Joko Widodo, discussed several strategies to strengthen the country`s foreign exchange earnings.
"We will implement the regulation on the use of B20, as well as other programs, to make retrenchment through the use of local component," the minister stated.
The programs, which have been implemented, are considered capable of reducing the balance of payment. The programs include encouraging the use of B20, increasing the use of local components, and optimizing tourism services, he noted. The other similar program to save foreign exchange earnings includes reviewing the list of imported goods, he added.
The government believed the programs will be able to save billions of US dollars in foreign exchange earnings. Minister Hartarto predicted that the government will be able to save US$2 billion in foreign exchange earnings by increasing the use of local components. (ant )