GIIAS 2023 Is Expected To Be The Center For Automotive Industry Growth

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: Doc. Ministry of Industry)

JAKARTA - The Ministry of Industry (Kemenperin) said that the automotive industry has played a major role in supporting national economic growth.

This is evidenced by the sales of 26,658 units of four-wheeled motorized vehicles or more than Rp11 trillion at the 2022 Gaikindo Indonesia International Auto Show (GIIAS) automotive exhibition.

Therefore, the Ministry of Industry fully supports the implementation of GIIAS 2023 as an international level prestigious event that displays the latest developments in technology and products in the motor vehicle industry in Indonesia.

"On behalf of the Government of Indonesia, we congratulate and appreciate the implementation of GIIAS, and industry players of four-wheeled motorized vehicles for significant cont.000si on the development of the motor vehicle industry," said Industry Minister Agus Gumiwang Kartasasmita in her official statement, quoted Wednesday, August 8.

Agus also appreciated the GIIAS event which affected the significant upward trend of people who were interested in owning electrified technology vehicles, both hybrid vehicles and battery-based electric motorized vehicles (KBLBB).

"This will spur the government's efforts to build an electric vehicle ecosystem in Indonesia," he said.

At GIIAS 2022, of the total cars sold, around 1,594 units were electric technology vehicles.

At that time, the exhibition, which was attended by 385,487 visitors, was attended by 25 passenger and commercial vehicle brands, 15 two-wheeled vehicle industry brands, and a number of caroseri industries that also participated.

According to Agus, over the years, the Indonesian automotive sector has experienced extraordinary changes, became a key player in the regional market and became an important contributor to the national economy.

"With sustainable infrastructure development, technological breakthroughs and innovations, medium-class growth, and increasing car demand, turning Indonesia into a busy automotive center in Southeast Asia," he said.

He added that the automotive sector in Indonesia not only creates jobs, but also provides significant economic opportunities, both for domestic and foreign companies.

"The automotive industry has become a catalyst for innovation, research and development, which also determines the mobility and transportation of our nation," he said.

Currently, the strength of the automotive industry in Indonesia is supported by 21 four-wheeled motor vehicle industry companies, with a total production capacity of 2.35 million units per year.

This automotive industry has absorbed 38,000 direct workers, and more than 1.5 million people who work along the automotive supply chain of tier-1-tier-3.

This sector is even able to provide significant foreign exchange through its export achievements.

"In addition, rapid industrial expansion has prepared roads for large investments, resulting in a manufacturing ecosystem, suppliers, dealers, and strong service providers," he said.

Minister of Industry Agus Gumiwang Kartasasmita and Chairman of the Association of Indonesian Automotive Industries (Gaikindo) Yohannes Nangoi exchanged souvenirs at the Power Dinner GIIAS 2023 event. Photo: Doc. Ministry of Industry