According to Industry Minister Airlangga Hartarto, investors from Asia and Europe are committed to investing US$900 million in Indonesia’s automotive industry.
Investments in manufacturing industries, including the automotive sector are important for Indonesia’s economy. As half of the products will be for the domestic market, this would reduce the country’s dependency on exports. Furthermore, a large number of workers are employed in the manufacturing industry.
The minister also hopes that the comprehensive economic partnership agreement (IA-CEPA) between Indonesia and Australia would open a wider market for the automotive industry.
In 2018, Indonesia exported a total of 346,000 vehicles, with 264,000 completely build up (CBU) and 82,000 completely knocked down (CKD). The total value of vehicles exports were US$4 billion, plus US$2.6 billion from component exports. The government aims to export 100,000 vehicles this year, 95 percent of which are CBU.
WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!