Coordinating Minister Airlangga: The Automotive Industry Becomes The Backbone Of The National Economy

Photo: Doc. Antara

JAKARTA - The Coordinating Minister (Menko) for the Economy Airlangga Hartarto considers that the automotive industry is the backbone for national economic growth.

This was shown by the processing industry which was able to grow 4.88 percent on an annual basis (yoy) with a contribution of 18.25 percent to GDP. Meanwhile, the Transportation Equipment Industry also grew by 9.66 percent with a contribution to the National GDP of 1.42 percent.

"The backbone is the automotive industry," said Coordinating Minister Airlangga through an official statement in Jakarta, quoted from Antara, Friday, August 11.

He conveyed this at the opening of 'The 30th Gaikindo Indonesia International Auto Show (GIIAS)'.

Adapin The Transportation Equipment Industry is one of the industries that has always recorded positive growth for nine consecutive quarters from the second quarter of 2021 to the second quarter of 2023.

Furthermore, the Coordinating Minister for Airlangga also said that based on the latest report from the Institute for Management Development (IMD), Indonesia's competitiveness jumped 10 levels, from 44 to 34 with economic performance being the key.

"This is also the result of the Job Creation Law, reform in our workforce is number one," he said.

Closing his remarks, the Coordinating Minister for Airlangga added that the government continues to encourage export growth and also encourage carbon reduction in Indonesia by using electric vehicles.

He also hopes that the results of this year's GIIAS can increase from the previous year.

In this activity, the Coordinating Minister for Airlangga inspected all the booths in the exhibition. The Coordinating Minister for Airlangga also symbolically attached Domestic Component Level (TKDN) certification to one of the original products made in Indonesia exhibited at the event.

Meanwhile, Indonesia's economic growth in the second quarter of this year reached 5.17 percent (yoy), making Indonesia's economic growth record for seven consecutive quarters above 5 percent (yoy).

Based on data from the World Bank (World Bank) which was updated in July 2023, Indonesia is again included in the upper middle-income country. The Indonesian Manufacturing PMI Index in July 2023 also continued its expansionary trend for 23 consecutive months, namely at the level of 53.3, which this achievement shows the high optimism of manufacturing industry players in Indonesia amidst the instability of global conditions and weakening world markets.

The Coordinating Minister for Airlangga further said that Indonesia's GNI per capita was at USD 4,580, and it was hoped that at the end of 2024 it would reach USD 5,500.