Menperin Agus Gumiwang Jamin Bengkel IKM Tetap Hidup Ahead Of The Electric Vehicle Conversion

Illustration (Photo: Doc. Antara)

JAKARTA - The transformation of electric vehicles in Indonesia is increasingly being echoed by a number of parties, especially within ministries/agencies.

This has also raised its own concerns for a number of people, including business actors at the Small and Medium Industry (IKM) workshop that oversees conventional vehicles.

These business actors are worried that later their workshop will no longer be looked at by the public and must be permanently closed.

Responding to this, Minister of Industry Agus Gumiwang Kartasasmita said, in principle, the incentives for electric vehicles are not only focused on their vehicles, but also on the entire vehicle ecosystem.

"I said that building an electric car ecosystem is included in the deepening of the structure. The deepening of the structure in the combination is ripe, automotive companies already have many of your favorite programs with small industries, so tier 2 and tier 3 are filled with many SMEs," Agus said in his office, Tuesday, December 27.

According to Agus, the scheme can also be applied to electric-based vehicles. He emphasized that the incentives provided by the government would also have a positive impact on the IKM workshop. This is because the conversion of electric vehicles itself will be handled by these workshops.

"What is the focus of the government is also that we provide the incentive program to converts from old motorbikes, old motorbikes, second hands, competitions. All of the conversion work is not in the automotive industry, definitely in workshops (conventional). It will live," he explained.

On the same occasion, the Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE), Taufik Bawazier, said that these IKM workshops were also related to the requirements for using local spare parts in vehicle components.

"If you look at the Ministerial Regulation signed by the Minister, there is one regulation that we obligatory in the context of 153 components, 80 components must be produced by the domestic industry. This means that there is local purchasing, TKDN (Domestic Component Level). So, with TKDN, IKM is still producing," he said.

Taufik also said that until now no IKM has been closed. Instead, these SMEs obtained an increase in sales.

He appealed to SMEs not only to rely on local markets.

"Later on electric cars, I convey to friends at IKM, don't look at Indonesia. The global market also needs you. This means that you can also be part of the international supply chain to supply electric cars in any country," he added.

Therefore, Taufik reminded, do not let this news actually discourage the IKMs.

According to him, the transformation of electric vehicles could actually be a new opportunity for the industry to develop and innovate in producing new components.

"In fact, this is actually a new potential because there was ice technology, now there is a new addition with electric cars. There is a target of around 400 thousand electric motorcycles. This means that there are new input additions that make them (conventional workshops) increase their innovation, supply these components," he concluded.