CBU Car Exports Targeted At 1 Million Units By 2025, Increasing Competitiveness Is The Focus

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Industry encourages the national automotive industry, especially four or more wheels, to increase production capacity to meet foreign market demand.

The Minister of Industry (Menperin) Agus Gumiwang Kartasasmita hopes that by 2025, the export of completely built up (CBU) cars can reach 1 million units. According to the Minister of Industry, this target can be achieved through efforts to increase the competitiveness of production results.

"The government targets that by 2025 the export of CBU vehicles can reach 1 million units. This can only be achieved if all parties collaborate in increasing production efficiency and product competitiveness, creating a conducive business climate through harmonization and synchronization of regulations in the automotive sector," he said in a statement quoted on Friday, December 10.

The Minister of Industry added that if this could be achieved, the motor vehicle sector would further strengthen its central role in the Indonesian economy. This is because the automotive industry is one of the most important sectors and a major contributor to gross domestic product (GDP).

"The production capacity of all factories in Indonesia reaches 2.35 million units per year, by absorbing 38.00 direct workers," he said.

Not to mention, in terms of investment absorption, the Minister of Industry mentioned that the amount was not small.

"The total investment that has been invested has reached IDR 140 trillion and has provided a livelihood for 1.5 million people who work along the value chain of this industry," he said.

For information, Indonesia's automotive products have been successfully exported to more than 80 countries. During January-October 2021, there were 235,000 units of CBU vehicles with a value of Rp. 43 trillion, 79,000 sets of CKD with a value of Rp. 1 trillion, and 72 million units of components with a value of Rp. 24 trillion.

"Learning from the experience of this industry for decades, there is one most important thing, namely the commitment of the principal to make Indonesia an export-oriented production base," concluded the Minister of Industry Agus Gumiwang.