Chairman Of Gimpabi Says Tire Imports Are Needed To Support Supporting Industries

Illustration (Photo: Doc. Antara)

JAKARTA - Chairman of the Association of Indonesian Tire Importers and Entrepreneurs (Gimpabi), Ary Tjahyono, said the supply of imported tires is still used as a supporting component in various industrial activities such as mining, plantations, logistics, and transportation.

Ary said many tire needs cannot be produced domestically even though Indonesia is one of the largest tire-producing countries.

"The gap between demand and demand, if not handled properly, can increase logistics costs, which in turn will contribute to price increases (inflation) for various products and services", said Ary as quoted by Antara, Tuesday, July 12.

He denied that the information circulating about the domestic tire market that had been dominated by imported tires was not based on accurate data.

The Central Statistics Agency (BPS) noted that in 2021 tire imports reached 123.6 million US dollars, while exports reached more than 1.5 billion US dollars.

This achievement marks Indonesia as a net exporter of four-wheel and two-wheel tire products.

Ary said that the tire market in Indonesia is currently controlled by local tire manufacturers.

Local tire production is dominated by passenger car tires and motorcycle tires.

"Tire imports are carried out for product segments which until now have not been able to be fulfilled or produced by local manufacturers so that they have their own different markets and do not threaten the domestic tire industry", said Ary.

He added that Indonesia is still a destination for investment and business development for the tire industry, which continues to grow.

This is indicated by the entry of new investments in this sector as well as in supporting sectors such as natural rubber and chemical production.

Ary said the growth of the tire industry was shown by the increased performance and production capacity of local manufacturers, even during the COVID-19 pandemic.

However, imports are still needed to meet market needs that cannot be produced in Indonesia.

On the other hand, Ary also emphasized that Gimpabi fully supports every government policy and regulation that aims to provide clarity and simplification in the export/import process through the Job Creation Act and its derivative regulations.