Central Ministry of Industry Finalizes Preparation of Automotive Industry Road Map

By : Ridwan And Aldi Firhand. A | Saturday, August 12 2017 - 09:21 IWST

Minister of Industry Airlangga Hartarto (second right) was accompanied by Director General of Metal, Machinery, Transportation and Electronic Equipment (ILMATE) I Gusti Putu Suryawirawan (left) at the opening of Gaikindo Indonesia International Auto
Minister of Industry Airlangga Hartarto (second right) was accompanied by Director General of Metal, Machinery, Transportation and Electronic Equipment (ILMATE) I Gusti Putu Suryawirawan (left) at the opening of Gaikindo Indonesia International Auto

INDUSTRY.co.id - Jakarta - Director General of Metal, Machinery, Transportation and Electronic Industry (ILMATE) I Gusti Putu Suryawirawan said the Ministry of Industry together with related stakeholders is finalizing the preparation of the automotive industry roadmap in line with the National Energy Policy and GHG emission reduction targets.

"It is hoped that this roadmap will be the guidance of relevant parties in implementing future programs that will support the achievement of energy targets in accordance with the mandate of KEN and RUEN, and at the same time reduce greenhouse gas emissions in accordance with the government's commitment in front of COP21 forum," said Putu in Tangerang (11/8/2017).

Putu added that Indonesia is currently committed to reducing greenhouse gas emissions by 29% by own effort, and 41% with international assistance until 2030.

In the roadmap, according to Putu, the growth of the automotive industry in the future will be directed to the development of environmentally friendly vehicles, and will be developed in stages by considering the sustainability of investment, the growth of the automotive industry, the achievement of greenhouse gas emission reduction commitments and the contribution of the automotive sector to the national economy .

The same thing was conveyed by Vice President Jusuf Kalla, As part of the global community, Indonesia is committed to efforts to maintain the quality of the environment. The Indonesian government's concern on environmental quality is translated one of them in the regulation of the automotive industry in the future. It appears on the government road map to encourage the use of energy-efficient and environmentally friendly cars, especially electric and hybrid cars in the next 7 to 10 years.

"This is our challenge (Indonesia), as well as the steps we must carry out, through government policies," he said.

One of the implementation implementations of environmentally friendly aspects is carbon reduction or low emissions in cars in Indonesia. The Indonesian government also targets as many as 400 thousand units of low emission vehicles (LCEV) circulating in the Indonesian market in 2025. This figure is equivalent to 20 percent of the total vehicle production per year.

Previously, Minister of Industry, Airlangga Hartarto promised to provide special incentives for companies that successfully develop low emission vehicles. Currently Kemenperin is completing incentive scheme for low emission vehicle program. The program is a continuation of previously rolling programs, namely Fuel Efficient Vehicles and Affordability (KBH2) or low cost and green car (LCGC). However, the new incentive policy can be implemented if Euro 4 Fuel is available in 2019 or sooner.

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