VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Indonesian Minister of Industry, Agus Gumiwang Kartasasmita officially opened the 2021 Gaikindo Indonesia International Motor Show (GIIAS) at ICE Bumi Serpong Damai, Tangerang, Banten Thursday (11/11). In his remarks, Minister Agus said that the automotive industry is one of the fastest growing industries. This was seen from the growth of the transportation equipment industry which reached 27.84 percent in the third quarter of 2021. This double-digit growth was printed by the transportation equipment industry for two consecutive quarters.

Minister Agus Gumiwang also said that sales figures from the automotive industry also increased. In the January-September 2021 period, retail sales reached 600 thousand 344 units, a sharp increase compared to the same period in  the previous year of 407 thousand 390 units. This surge  indicated an economic recovery on the right track.

Minister Agus Gumiwang further stated that the automotive industry is able to make a significant contribution to the national economy so that it becomes a priority sector for development according to the Making Indonesia 4.0 road map. The potential of the automotive industry is currently supported by 21 four-wheeled motor vehicle industry companies. The total production capacity is 2.35 million units per year, absorbing 38 thousand direct labors and more than 1.5 million people work along the value chain in the industrial sector. In  addition, Indonesia is the largest market for automotive products in ASEAN. This is an opportunity for the development and industrialization of motor vehicles, including those that are energy efficient and environmentally friendly in accordance with the growing global trend. Export performance in the January-September 2021 period was recorded at 207 thousand Completely Built Up (CBU) vehicles.

On this occasion, Minister Agus Gumiwang Kartasasmita appreciated the granting of relaxation of sales tax on luxury goods borne by the government. It has a significant impact on the recovery of the automotive industry sector and increases the confidence of industry players. This can be seen from the value of Indonesia's manufacturing purchasing managers' index (PMI) in October 2021 which reached 57.2 or the highest since the Covid-19 pandemic. This is a strong indicator that the industrial sector has entered an expansive stage.