Indonesia Becomes One of the Leading Players in the Southeast Asian Automotive Industry

By : Ridwan And Aldi Firhand. A | Tuesday, November 28 2017 - 22:38 IWST

Menperin visit automotive factory in Serang Banten
Menperin visit automotive factory in Serang Banten

INDUSTRY.co.id - Serang - Director General of Metal, Machinery, Transportation and Electronics Industry (ILMATE) of the Ministry of Industry, Harjanto said that the automotive industry is categorized as labor-intensive sectors, and has opened up opportunities for the absorption of large local labor force.

"In 2016, the automotive industry in Indonesia has employed 1.5 million people, distributed in various sectors, from the assembly industry, the first to the third tier components, to the official workshop level for sales, service and spare parts," Harjanto in Serang, Banten, Tuesday (28/11/2017).

In addition, he continued, the automotive industry chain from upstream to downstream also involves many other industrial sectors.

"Not surprisingly, if the automotive industry grows, then the supporting industry sector will also grow, especially since Indonesia is still the main destination for investment in the automotive industry sector," he said.

Data from the ASEAN Automotive Federation, published in the automotive-cluster.org study show, Indonesia is currently one of the important players in the Southeast Asian automotive industry.

"Indonesia is the second largest automotive producer country after Thailand, not only to meet domestic consumption needs, Indonesia is also increasingly being encouraged to become a global production base and a bright investment opportunity to support the realization of these targets," said Harjanto.

As is known, the government is prioritizing the development of the national automotive industry through various strategic measures to attract new investment and business expansion.

Moreover, the sector has performed well, with growth of 5.63 percent or above economic growth of 5.06 percent in Q3 / 2017.

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