Inabuyer EV EXPO 2023 Expected Bimbing MSMEs To Be More Progressive

Coordinating Minister for the Economy Airlangga Hartarto. (Photo: Aris Nurjani/VOI)

JAKARTA - Coordinating Minister for Economic Affairs of the Republic of Indonesia Airlangga Hartarto said that the Inabuyer EV EXPO 2023 is expected to be able to guide MSMEs to become more progressive in facing challenges and become providers of electric motor components.

"Hopefully this event can spur and navigate MSMEs progressively to improve performance and existing responsibilities," he explained in his remarks Inabuyer EV EXPO 2023, Tuesday, November 28.

Di tengah berbagai risiko ekonomi, kata Airlangga, pertumbuhan ekonomi Indonesia tetap positif di level 4,49 persen (yoy) dan lebih baik dibandingkan dengan negara Asia lainnya.

In addition, the Open Unemployment Rate (TPT) in August 2023 is 5.32 percent.

This figure is down 0.54 percentage points compared to August 2022.

The number of unemployed figures in Indonesia as of August 2023 was 7.86 million people out of 147.71 million people in the workforce.

This number decreased by 0.54 percent, to be precise, around 0.56 million people from August 2022.

Meanwhile, the number of Indonesians working reached 139.85 million people, an increase of 4.55 million people from August 2022.

This number consists of 96.39 million full workers, 34.12 million part-time workers, and 9.34 million unemployed people.

Furthermore, the manufacturing industry grew 5.20 percent year on year (yoy), contributing 1.06 percent yoy to national economic growth.

The strong domestic demand for the manufacturing industry is supported by the metal goods industry which includes computers, electronic goods, optics, and electrical equipment which grew 13.68 percent yoy.

In addition, Indonesia's manufacturing Purchasing Managers' Index (PMI) in October was still maintained at an expansionary level, namely 51.5. Supported by the manufacturing industry grew 5.20 percent (yoy) in the third quarter of 2023.

This figure exceeds Indonesia's economic growth in the third quarter of 2023 which was recorded at 4.94 percent (yoy).

The contribution of the processing industry to National GDP is also still the highest and has increased to 1.06 percent from 0.99 percent in the third quarter of 2022.

"The PMI manufacturing is 51.5 percent and this is better than the average in the aspect. This positive achievement is supported by the manufacturing industry sector which is growing higher than the national economic growth sector," he explained.

Airlangga said that currently the strength of the automotive industry is supported by 26 four-wheeled vehicle industries with a production capacity of more than 2 million and absorbs 1.5 million workers.

Based on Gaikindo data, it shows that accumulatively, national car sales for the January-October 2023 period will be 836,049 units.

Cumulatively, car exports from Indonesia from January to October 2023 for the CBU model reached 426,381 units, up 10.9 percent from the same period the previous year which was recorded at 384,592 units.

Airlangga said Indonesia was committed to reducing the amount of carbon emissions in the energy sector by 358 million tons of CO2e by 2030.

So that the roadmap or roadmap related to the brewing of electric vehicles or EV Battery (EV) is very important.

"The development of electric vehicles continues to receive good momentum, where we have raw materials, especially for nickel-based raw materials, especially for ev and electric batteries. Electric vehicle drivers are important because investment continues to increase and the sale of molis has also increased," he said.

In addition, Airlangga added, to support the program, the government issued government incentives or assistance for the purchase of electric vehicles on March 20, 2023.

The government announced aid funds of IDR 7 million per unit to buy new electric motors and converts.

Then the Government-Borrowed Value Added Tax (PPN-DTP) incentive program for the purchase of four-wheeled electric vehicles and buses.

Providing incentives is provided with requirements for the level of domestic components (TKDN) at least 40 percent for electric cars and TKDN at least 20 percent for electric buses.

"We hope that all MSMEs will become part of the electric vehicle ecosystem, especially for electric motors and it is hoped that they can become suppliers of electric motor components. And I can get information that MSMEs are collaborating with the Busan Economic Promotion Agency (BEPA) for electric vehicle technology. It is hoped that it can increase the role of Indonesian MSMEs in the EV ecosystem," he said.

The Opening Ceremony ended with the signing of the MoU between the Ministry of Energy and Mineral Resources of the Republic of Indonesia, the Indonesian Shopping Center Retailers and Tenants Association (HIPPINDO), and the Indonesian Electric Motorcycle Industry Association (Aismoli).

This collaboration aims to advance the electric motorcycle conversion program by involving wider participants.

In addition, the MoU was also signed between PT Asuransi Jasa Raharja Putra and Aismoli to provide electric motorcycle insurance.