Gov’t to Maintain Automotive Industry Revival
By : Nata Kesuma | Friday, April 16 2021 - 13:19 IWST

President Jokowi joins the opening of the 2021 Indonesia International Motor Show, from the State Palace, Jakarta, Thursday (15/4). (Photo by: PR/Agung)
INDUSTRY.co.id - The Government’s policy to relax Government-borne luxury goods sales tax (PPnBM DTP) on automobiles, which has been put in place since March, has successfully boosted product sales and increased people’s purchasing power in automotive sector.
Therefore, it must be maintained since it will bring multiplier effects to other sectors.
President Joko “Jokowi” Widodo on Thursday (15/4) said that the demand for automotive products skyrocketed to 190 percent.
“It indicates that the products are not in stock and the production soars, meaning that the automotive industry has revived.We must maintain the revival of automotive industry amid the COVID-19 pandemic which currently shows no sign of abating,” he said during the opening of the 2021 Indonesia International Motor Show, from the State Palace, Jakarta.
Indonesia’s manufacturing industry also starts to see a rebound as Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) climbed to 53.2 which is an expansive phase. In addition, Bank Indonesia’s Prompt Manufacturing Index is predicted to reach 55 percent at the second quarter.
President Jokowi affirmed that the figure is higher than that of Indonesia’s PMI before the pandemic, which was recorded at 51 percent.
He went on to say that automotive industry is an engine that drives the national economy. Therefore, we must speed up the growth of automotive industry because it will affect many domestic businesses which support the industry’s supply chain from upstream to downstream.
“Participation of MSMEs (Micro, Small, and Medium-sized Enterprises) in the industry’s supply chain must be increased. We must also prioritize value added for domestic economy,” he said adding that the revival of automotive industry must be coupled with the increase in local labor absorption that will eventually improve people’s welfare.
On that occasion, the President has also encouraged Indonesia’s automotive industry to recover from the pandemic, to absorb more labors, to contribute to stimulate the MSMEs, and to boost Indonesia’s export in global market.
“The Government also expressed hope that production capacity in automotive industry is to be further increased through the utilization of local content. The industry should not only be focused in domestic market but also to enter global market,” he said. According to the President, to attract more investment in automotive sector should become the priority.
To that end, the Government has issued the Job Creation Law.
“We have also established the Indonesia Investment Authority expected to provide ease and certainty to the investor in doing business in Indonesia,” he stated.
Nevertheless, measures taken to recover the economy must be in line with measures to curb the pandemic. Therefore, the Government can protect the health of its people while at the same time stimulate the economy. (FID/UN) (RAS/MUR
Read Also
Cipta Perdana Lancar Ready to Expand and Diversify for Sustainable…
Electric Cars are Indonesian Automotive Industry’s Future, President…
Minister of Industry Agus Optimistic 2024 Indonesia's Manufacturing…
Manufacturing Still Accounts for Lion’s Share of Exports: Industry…
DRMA Again Records Increase in Net Profit Up to Double Compared to…
Today's Industry

Jumat, 28 Maret 2025 - 22:21 WIB
SUNeVision Initiates MEGA IDC Phase Two Development
SUNeVision, the technology arm of Sun Hung Kai Properties (SHKP), today announced the commencement of construction for Phase Two of MEGA IDC in Tseung Kwan O. As Hong Kong's largest data centre…

Jumat, 28 Maret 2025 - 22:07 WIB
TDL Records New Revenue Record of IDR 25 Trillion in 2024 Ahead of 50th Anniversary
PT Metrodata Electronics Tbk (MTDL), the largest technology Company with the most complete IT and telecommunications products in Indonesia, managed to record a revenue of IDR 25 trillion in…

Jumat, 28 Maret 2025 - 22:00 WIB
Wireless Logic Selected By Thales As IoT Connectivity Partner
Wireless Logic, a global leader in IoT connectivity solutions has been selected by Thales, a global leader in advanced eSIM technologies, to enable secure, scalable and resilient IoT connectivity…

Jumat, 28 Maret 2025 - 21:53 WIB
Microvista Expands International Presence with Mobile CT System ScanExpress
The German specialist in industrial computed tomography and non-destructive testing, Microvista, announces the European expansion of its innovative mobile CT system, ScanExpress. The system…

Jumat, 28 Maret 2025 - 21:44 WIB
Turning Loss into Profit, INOV Optimistic in Maintaining Positive Performance this Year
PT Inocycle Technology Group Tbk (INOV:IJ) Indonesia's leading and largest PET waste recycling Company managed to book sales of IDR 629 Billion in 2024, an increase of 4.8% compared to the previous…
News Comment