Coordinating, The Ministry Of Industry Wants IKM To Enter The National Automotive Supply Chain

JAKARTA - The Ministry of Industry emphasizes the importance of large automotive industries to partner with domestic small and medium industries (IKM). One of the goals is to create opportunities for IKM to enter the supply chain of the national automotive industry.

Based on Gaikindo and AISI data, during January-October 2023, the total domestic sales of four-wheeled vehicles or more have reached 836,048 units and total domestic sales of two-wheeled vehicles of 5,237,976 units.

"This can encourage large automotive industries to increase production capacity and create opportunities for IKM to enter the supply chain of the national automotive industry," said Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry Reni Yanita in Jakarta, Wednesday, November 29.

With this market potential, the supply chain ecosystem of the domestic automotive industry needs to be strengthened, one of which is through a large industrial partnership with domestic IKM as carried out by the Ministry of Industry through the Coordination Forum for the IKM Transportation Equipment Partnership with the Big Industry.

Reni also emphasized that commitment and cooperation from all parties are needed so that the domestic industry, especially IKM, can play a role in providing quality and competitive automotive components.

The partnership strategy between IKM and Tier APM in the automotive industry in practice can encourage IKM independence through market certainty, technology transfer, quality improvement and quantity, management system, human resource improvement, and ease of access to financing.

"As for the large automotive industry, partnerships with IKM are able to support efforts to increase the Domestic Component Level (TKDN) of the products produced," said Reni.

In the IKM Partnership Coordination Forum for Transportation Equipment with the Big Industry, the Ministry of Industry collaborated with Astra through the Dharma Bhakti Astra Foundation (YDBA), PT Astra Daihatsu Motor, PT Kayaba Indonesia, and PT Patria Maritim Perkasa.

The event was also filled with various activities, such as workshops, handing over facilitation certificates of the Directorate General of IKMA, business meetings, signing Collaboration Commitments to handing over award plaques to transportation industry players.

Reni added that the Link and Match Coordination Forum is an annual routine agenda of the Directorate General of IKMA which has been held since 2017.

"In last year's event, this activity resulted in an MoU between 16 Tier APM and 32 IKM which recorded a potential turnover value of IDR 105.2 billion," he said.