Ministry Of Industry: Domestic Bus Industry Has Promising Prospects

Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry Putu Juli Ardika. (Photo: Doc. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) said that the domestic bus industry has promising prospects to be able to strengthen competitiveness while at the same time encouraging an increase in economic added value (EVA).

"We see that the bus industry has bright prospects in 2024, of course this is a promising thing for bus business actors in Indonesia," said Acting Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry Putu Juli Ardika in Jakarta, quoted from Antara, Monday, July 22.

He noted that overall sales of factories to national bus dealers rose by 140 percent on an annual basis (year on year/yoy) to 6,227 units in 2023.

Meanwhile, at the same time, retail retail sales for national bus consumers also grew 59 percent on an annual basis (yoy) to 5,369 units.

This expansionary growth makes businesses in the bus sector have a great opportunity to develop.

Putu said this was because the creativity and skeletal design of Indonesian-made bus cars is one of the best in the world, and is recognized globally because they have competitive prices.

"The Indonesian carceri production bus has also been received in several export destination countries," he said.

Furthermore, he said that so far, the Ministry of Industry has consistently encouraged the performance of the automotive industry sector in the country, including in terms of increasing the market and selling cars in the country.

This is because the automotive industry is one of the sectors that has priority development because it is able to make a significant contribution to the national economy.

"The transportation industry is the main motor for industrial gross domestic product (GDP) growth in 2023 with growth of 7.63 percent or higher than the overall growth in the industrial sector. The growth of the transportation industry is inseparable from the contribution of the automotive sector," said Putu.

Previously, the Minister of Industry Agus Gumiwang Kartasasmita conveyed that the government-borne luxury goods sales tax (PPnBM DTP) incentive could be a solution to overcome the stagnation of the car market, thus encouraging sales.

According to him, the fiscal incentive has succeeded in increasing domestic vehicle sales by 113 percent in the March-December 2021 period, as well as in January-May 2022, the program has succeeded in increasing sales to 95 thousand units.