The Ministry Of Industry Calls Indonesia A Production Base And Export Hub For The German Automotive Industry

Illustration. (Photo: Unsplash)

JAKARTA - The Ministry of Industry said that the automotive industry in Indonesia has been trusted to be the production base and export hub of the German automotive industry. This can be seen from PT. Mercedes Benz Indonesia has been able to produce the most luxurious sedan models in the current Mercedes-Benz line-up.

Director General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE) Taufiek Bawazier said the production of luxury sedans shows that Indonesia is trusted as a production base for motorized vehicles of all segments, from low, middle to premium and luxury.

"The growth of the middle class that continues to increase, then the demographic bonus, the penetration of digital technology, as well as the increasing trend in the use of new and renewable energy, will be a catalyst for the transformation of the national motor vehicle industry towards zero emission technology," he said in a written statement, quoted Tuesday, November 30. .

Furthermore, Taufiek said the government was ready to enter the era of zero emission technology through Presidential Regulation Number 55 of 2019 concerning the Acceleration of the Battery Electric Vehicle (BEV) Program for Road Transportation.

In addition, it is supported by Government Regulation Number 74 of 2021, which states that vehicles with zero emission technology such as BEVs and Fuel Cell Electric Vehicles (FCEV) that are produced domestically, will be given a PPnBM tariff of 0 percent.

"The government encourages Mercedes Benz to make Indonesia an export hub for motorized vehicles, both conventional and electrified to the global market," he said.

According to him, the automotive industry in Indonesia is able to be competitive in the global arena. He said, this can be seen from the achievement of the number of exports of four-wheeled vehicles or more, including their components.

In the January - September 2021 period, there were 207 thousand units of CBU vehicle exports with a value of IDR 37.65 trillion, then 62 thousand sets for CKD with a value of IDR 0.96 trillion, and 65 million pieces of components with a value of IDR 21.86 trillion. . Indonesia's automotive export destinations have reached more than 80 countries.

Taufiek said that to attract investment for low-volume motor vehicle manufacturers, especially from Europe, the Ministry of Industry has issued Minister of Industry Regulation Number 23 of 2021 concerning Four or More Wheel Motorized Vehicles.

In this regulation, there is a simplification of the Completely Knock Down (CKD) requirements and the completeness and completeness of Incompletely Knock Down (IKD), as well as providing convenience for the import of secondary components for production purposes (shortage, mistake and reject) subject to mandatory SNI.

President Director of PT Mercedes Benz Indonesia, Patrick Schwind said that in 2020 Mercedes-Benz has reached 50 years of operation in Indonesia, by producing both passenger and commercial motor vehicles at the Wanaherang factory, West Java.

PT Mercedes Benz Indonesia officially launched its two newest models, the E-Class and S-Class, which were produced at the Wanaherang factory, Bogor - West Java. The New E-Class and New S-Class set the highest standards in their respective segments and complete the locally assembled model line-up, including the A-Class and C-Class in the luxury sedan, GLA, GLC, GLE, and luxury sedan segments. GLS in the SUV segment, as well as the AMG A 35 Sedan and AMG GLA 35 4MATIC for the performance cars segment.

"The company is committed to continuing to operate in Indonesia for the next 50 years and more. This commitment is implemented through continuous addition of domestically assembled models, including the launch of the E Class and S Class," he said.

These efforts will have a positive impact on utilization, expansion of investment, employment and deepening of automotive components. This will strengthen the brand image and customer loyalty of Mercedes Benz in Indonesia as well as provide added value for the development of the automotive industry in Indonesia.

Previously, in October 2021, Minister of Industry Agus Gumiwang Kartasasmita made a working visit to Germany. During his visit, Minister of Industry Agus met with DAIMLER AG (Mercedes-Benz), by explaining investment opportunities in the country for premium-class vehicle manufacturers from Europe, including Indonesia's potential as a basis for developing zero emission vehicle technology.