Minister Of Industry Agus Gumiwang Targets RI To Be Able To Export 600,000 Car Units This Year

JAKARTA - Minister of Industry Agus Gumiwang Kartasasmita targets sales of Indonesian manufacturer cars abroad (exports) to increase by 20 percent by 2024.

"The export of cars rose between 15-20 percent," he said when met after the opening ceremony of the Indonesia International Motor Show (IIMS) 2024 in Jakarta, quoted from Antara, Thursday, February 15.

The Minister of Industry said that the export quality of four-wheeled vehicles produced in Indonesia has been quite good, but currently there is a decline in the domestic market due to a slowdown in bank credit.

"Good. It's just that the domestic market is decreasing. Maybe our buying power is decreasing. Banking credit is slowing down, this is what we have to see," he said.

In 2023 the Ministry of Industry targets Indonesia's car exports to reach 500 thousand units. If calculated an increase of 20 percent, the cumulative export target of factory car production in the country will reach 600 thousand units in 2024.

Meanwhile, the automotive industry in the country is currently supported by 21 car industry companies, with a production capacity of 2.35 million units per year.

The Minister of Industry said one of the car manufacturers in Indonesia promised to expand the export market to Australia. "Mitsubishi promised us immediate export to Australia," he said.

On the other hand, the Indonesian Automotive Industry Association (Gaikindo) recorded that the number of exports of Indonesian manufacturer cars in 2023 reached 505,134 units, an increase of 6.7 percent compared to the previous year which was only 473,602 units.

Previously, the Minister of Industry also said that the government had prepared incentives for investors to build an electric car factory in Indonesia.

He said Indonesia only has four electric car factories, namely those of Wuling, DFSK, Hyundai, and Chery, but the production capacity of the four factories is still low.

According to him, the construction of an electric car factory in the country is needed to achieve the vehicle market absorption target, as well as so that Indonesia can compete in the international market.