Bringing Good News From Japan, Minister Of Industry Agus Says Mitsubishi Motors Can Contribute To A Trade Balance Surplus Of IDR 7 Trillion: Indonesia Becomes A Production And Export Base

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita brings good news from his visit to Japan. In Japan, the Minister of Industry met with the automotive principal of Mitsubishi Motors Corporation (MMC) and discussed a number of issues related to Mitsubishi car production activities in the country.

During the meeting, Mitsubishi Motors Okazaki Plant was committed to making Indonesia a production base and export base. Mitsubishi targets its export performance in 2022 to reach 72 thousand units, or an increase of 30 thousand compared to 2021.

This increase will contribute to the trade balance surplus of IDR 7 trillion. "Surely Mitsubishi will increase the export market so that it will make a real contribution to Indonesia's export performance," said Minister of Industry Agus in his statement, Monday, June 27.

Mitsubishi has committed to adding export destination countries and granted permission to Brand Holder Agents (APM) in Indonesia to add nine more countries. Currently, Mitsubishi APM in Indonesia has exported cars to 30 countries. "Mitsubishi also stated that Australia will be one of the countries included in their export list," said the Minister of Industry.

According to Agus, Australia is a very important market for Indonesia. Moreover, Indonesia and Australia are already bound by the Comprehensive Economic Partnership Agreement (IA-CEPA). "The Australian market is very large, especially since we already have a trade agreement, so it would be a shame if we didn't take advantage of it," he said

The Minister of Industry's visit to Mitsubishi this time is a follow-up to the results of the visit in March 2021, including related to the plan to increase investment of Rp. 11.2 trillion until 2025. Through additional investment, Mitsubishi targets to increase production capacity in Indonesia, from 220 thousand units to 250 thousand vehicles.

The plan is that Mitsubishi will produce the Xpander Hybrid car type and two new models, one of which will be produced in 2023.

Agus said the Ministry of Industry continues to encourage the automotive industry in the country, including Mitsubishi, to accelerate the production program of low carbon emission vehicles with Hybrid technology and Battery Electric Vehicle (BEV) or Electric Vehicle (EV) key car types by issuing Minister of Industry Regulation Number 36 2021 concerning Low Carbon Emission Vehicles, which among other things regulate the technology of hybrid vehicles and battery-based Electric Motorized Vehicles (KBL).

"We also continue to encourage Mitsubishi to be able to produce battery-based KBL vehicles in Indonesia with the use of a smaller battery size (key car) using a 20 kWH battery and a driving range of 170 kilometers," he said.

At a meeting with the Mitsubishi Motor Corporation, led by MMC CEO Mr. Takao Kato, Minister of Industry also discussed increasing the use of local Indonesian components, especially from small and medium industries (IKM), in the Mitsubishi vehicle production process. “Indonesian automotive components have been able to meet the specifications, standards and quality of Japanese manufacturers. We are also optimistic that automotive component IKM players in the country will be able to become part of the supply chain of the Japanese automotive industry," Agus explained.