Indonesian government is targeting to export 1 million cars by 2025 from this year target 340,000 units, said Minister of Industry (MoI) Airlangga Hartarto - Photo by MoI Office

JAKARTA (TheInsiderStories) – Indonesian government is targeting to export 1 million cars by 2025 from this year target 340,000 units, said Minister of Industry Airlangga Hartarto on Thursday (07/18). Therefore, he adds, the government is determined to create a conducive business climate through harmonization and synchronization of regulations in the automotive sector.

Previously his targeted that by 2030, Indonesia become the production base for both Internal Combustion Engine (ICE) and Electrified Vehicles for domestic and export markets. The government expect, 20 percent of the total production of new vehicles in Indonesia already use electric power by 2025.

“Currently Indonesia can produce 1.2 million car every year,” he said at the Indonesia International Auto Show ceremony in Tangerang, Banten, yesterday.

Hartarto revealed, this year’ target is still low because it only up 10 percent compared to 2018. He optimistic that this year’ export target could be realized because from January to May the manufacturer was able to produce 522,000 cars. In details the companies has produced¬†422,000 units Completely Built Unit and exports amounted to 115,000 cars.

Meanwhile, Indonesian Vice President Jusuf Kalla said in his speech that Indonesia’ car exports lost competitiveness with Thailand even cooperated with Southeast Asian Car Industry. According to him, the country’ position could be above Thailand by encouraging export of cars.

“To increase vehicle exports competitiveness, government will support the domestic manufacturing to lift its production capacity and the manufacture can more easily obtain its raw materials,” he stated

Furthermore, this senior politician of Golongan Karya Party, explained the government would build supporting infrastructure to boost automotive industry production. One of this project is Patimban Port construction  in Kerawang, West Java.

“The government will support it, because we realize automotive industry has a multiplier effect. This sector has thousands of vendors, pushing millions skilled workers and their wages are above Regional Minimum Wage,” he said.

Written by Willy Matrona, Email: theinsiderstories@gmail.com