JAKARTA - The Ministry of Industry held a link and match activity between small and medium industries (IKM) components of transportation equipment with a Tier Agent of Brand Holders (APM) this year. This activity was carried out to increase the capacity and competitiveness of IKM so that it could become part of the supply chain of the national automotive industry.
In this year's Link and Match activity, the Ministry of Industry through the Directorate General of Small, Medium and Multifarious Industries (IKMA) collaborated with the Indonesian Chamber of Commerce and Industry (KADIN), PT Astra Honda Motor (AHM), Dharma Bhakti Astra Foundation (YDBA), as well as Banking Institutions and Non-Bank Financing Institutions that brought together around 40 IKM automotive components with 20 PPM tiers.
"This partnership strategy is considered the most effective in strengthening the supply chain of the automotive industry in Indonesia," said Industry Minister Agus Gumiwang Kartasasmita at the 'Link and Match IKM transportation component with the APM tier' in Jakarta, Tuesday, November 1.
According to Minister of Industry Agus, the partnership strategy between IKM, a automotive component manufacturer and a PPM tier, can encourage IKM independence because of market certainty.
Furthermore, other benefits obtained by IKM are technology transfer, product quality improvement and quantity improvement, good management of management systems, improving human resource competence, and facilitating access to financing.
"For large automotive industries, partnerships with SMEs are able to support efforts to increase the Domestic Component Level (TKDN) of the products produced. This will be more domestic industries that can contribute as a tier for APM, especially SMEs," said Agus.
Then, said Agus, strengthening the IKM sector is important in supporting national economic performance. Digital capital and transformation facilities are the key to spurring the competitiveness of IKM products.
"In addition to capital, we must also continue to encourage IKM to transform faster towards the industrial era 4.0. This is because the production process will be more efficient and can create innovations," he explained.
AISI data states that during January-September 2022, sales of two-wheeled vehicles in the domestic market reached 3,612,360 units. Meanwhile, its exports exceeded 568,460 units.
Meanwhile, in July-September 2022, sales of motorcycles in the domestic market reached 1,365,733 units, an increase of 4.15 percent compared to the same period last year of 1,311,319 units.
This figure shows the potential growth of the automotive industry which is quite promising and becomes a momentum for APM to increase its production capacity.
Thus, there is also an opportunity for IKM to enter the supply chain of the national automotive industry. IKM (tier 2 and 3) players can enter the tier 1 industry to supply components, accessories, or spare parts (OEM) to APM.
On the same occasion, IKMA Director General Reni Yanita explained, Link and Match activities can make component IKM players dig up information about market potential that can be explored in APM suppliers. Meanwhile, APM suppliers can obtain information about the potential of IKM and the Directorate General of IKMA can get input related to the need for future IKM development.
"A total of 20 AHM tiers participating in this year's Link and Match also feature a variety of potential automotive components to be supplied by IKM. IKM is expected to intensively consult with big APM tiers and industries that are targeted by IKM partners," he said.
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