Minister Of Industry Agus Gumiwang Kartasasmita: Indonesia Is Ready To Become A Production Base And Export Hub For Vespa

Minister of Industry Agus Gumiwang Kartasasmita (Photo: Antara)

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said Indonesia is ready to become a production base and export hub for Vespa, considering that Indonesia is the largest motorcycle market with sales of 3.66 million units in 2020 and a 38 percent market share in ASEAN.

"Motorcycles are one of the most important modes of transportation for the people of Indonesia, so the potential for the automotive industry to fill the motor vehicle market is still very large," said Industry Minister Agus Gumiwang Kartasasmita at the groundbreaking ceremony for the construction of PT Piaggio Indonesia's Vespa production facility in Cikarang, West Java, reported by Antara, Tuesday, November 9.

According to him, the expansion carried out by PT Piaggio Indonesia is a big leap from the company that holds the iconic Italian motorcycle brand. In addition, this effort also makes a positive contribution to the development of the national automotive industry, especially in terms of increasing investment, employment, and empowering the local component industry.

"Keep in mind, this is an early stage. It means that in the future there will be more activities, participation, and investment from Italian friends, especially PT Piaggio Indonesia," said the Minister of Industry in a written statement.

The Ministry of Industry appreciates the construction of PT Piaggio Indonesia's production facilities on an area of ​​six hectares with a capacity of 10,000 units per year, whose first production will begin in the fourth quarter of 2022.

"The motorcycles assembled at the factory are scheduled to be launched at the end of 2022," said the Minister of Industry.

The government, he continued, will continue to oversee this investment by Piaggio Indonesia so that it is mutually beneficial for both companies, the government, and the Indonesian people.

For this reason, the Minister of Industry advised Piaggio Indonesia to involve as many small and medium scale component industries as possible to become part of its supply chain.

"We also encourage Piaggio to develop motorcycle electrification technology and make Indonesia a production base and export hub for Italy's iconic motorcycles from Indonesia to the world," he said.

The Minister of Industry is optimistic that Piaggio Indonesia's business development through the assembly of the "Made in Indonesia" Vespa can become one of the flagship products of Indonesia's pride.

"In addition, it can increase customer loyalty and provide maximum benefits for the national economy," he said.

Meanwhile, Managing Director & Country CEO of PT Piaggio Indonesia Marco Noto La Diega said that the realization of the investment could not be separated from the support of the Indonesian Government and looked forward to further support and cooperation.

"We believe this project will strengthen PT Piaggio Indonesia's contribution to the automotive sector, as well as increase experience and engagement with our brand," Marco said.