Opening IIMS Hybrid 2021, Jokowi Wants To Increase National Automotive Production Capacity

President Jokowi Opens IIMS Hybrid 2021 (doc. Antara)

JAKARTA - President Joko Widodo opened the Indonesia International Motor Show (IIMS) Hybrid 2021. This is the first time for the largest automotive exhibition in Indonesia to return during the COVID-19 pandemic.

The IIMS 2021 was held with a hybrid concept, combining online and offline. This means that the IIMS 2021 can be watched virtually, but also has a physical exhibition area at the Jakarta International Expo, Central Jakarta on April 15-25, 2021.

Jokowi said that the automotive industry is one of the drivers of the economy that must be accelerated immediately, because of the large involvement of business actors and the MSME industry. He hopes that through this exhibition, Indonesia's reputation in the automotive world can be further enhanced.

"The implementation of the IIMS Hybrid 2021 shows our readiness to host an international scale automotive event, including our readiness to hold the Mandalika MotoGP, Formula-E in Jakarta, and other international events", Jokowi said in his remarks, Thursday, April 15.

Jokowi said that we are still in a pandemic era, but we must not stop moving the economy in vigilance and prudence. Remind the automotive industry to continue to spur exports, accelerate the development of electric vehicles, and it is said to be a priority for growing investment.

"Once again, the government hopes that the production capacity of the domestic automotive industry can be increased by using higher local content", he continued.

Jokowi said that the increase in vehicle orders was inseparable from various stimuli provided by the government, especially the relaxation policy on the Sales Tax on Luxury Goods (PPnBM). This can be seen from the increase in purchase orders for motor vehicle products, which reached 190 percent.

"The tax relaxation policy has also been implemented, to boost purchasing power and automotive sales, in order to boost demand that can drive our automotive industry", Jokowi added.

Meanwhile, Hendra Noor Saleh as President Director of Dyandra Promosindo, the organizer of IIMS 2021, hopes that this event can support the momentum of relaxation of PPnBM that the government has given for the purchase of a new car. Hendra also ensures that the IIMS Hybrid 2021 implements strict health protocols based on CHSE Cleanliness, Health, Safety, and Environment Sustainability.

"In fact, this policy has been positively welcomed and spurred new energy by industry players but has not been maximally absorbed by the public due to the uneasiness of the COVID-19 condition. Dyandra Promosindo hopes to create more maximum opportunities and have a broad impact on all automotive industry stakeholders", said Hendra.

It is known that new car sales in Indonesia shot up 72.6 percent from 49.202 units in February 2021 to 84.910 units in March this year, referring to the monthly sales data for wholesales (factories to dealers) of the Association of Indonesian Automotive Industries (Gaikindo) on Thursday (14/4) ).

The sales increase of up to 72.5 percent occurred after the Indonesian Government implemented Sales Tax on Luxury Goods (PPnBM) incentives on March 1 for cars with engine capacities of 1.500cc and below, which was continued for vehicles with engines 1.501cc to 2.500cc in early April.

Sales of 84.910 are almost close to the average car sales in 2019 or before the COVID-19 pandemic emerged in Indonesia, which is an average of 85.576 units of the annual total of 1.03 million cars.

Commercial results in March 2021 even passed the first three months of 2020, namely January 80.435 units, February 79.644 units, and March 76.811 units in wholesales. Meanwhile, after the pandemic, monthly sales for new cars in a month reached a maximum of only 50 thousand units.