Opening the GAIKINDO JAW 2023 Automotive Exhibition, Coordinating Minister Airlangga Appreciates the Transportation Equipment Industry's Contribution to National Economic Growth

By : Nata Kesuma | Friday, March 10 2023 - 17:45 IWST

Source - Jakarta, 10 March 2023,- Growing up to 10.95% (yoy) until Q4-2022, the transportation equipment or automotive industry has listed itself as one of the industries experiencing significant growth. 

This is inseparable from the various supports provided by the Government, one of which is through incentives for Sales Tax on Luxury Goods Borne by the Government (PPnBM DTP).

"Earlier it was announced that sales of four wheels in January, compared to last year, increased by nearly 12%. And the cumulative number of domestic purchases was 1,048 million units, up 18%. Exports for CBU are 473,000 and if added to CKD the total is close to 600,000 units. So the production capacity has increased tremendously. Here there is a large Government contribution to sales," said the Coordinating Minister for the Economy Airlangga Hartarto when delivering his remarks at the Opening Ceremony of the 2023 GAIKINDO Jakarta Auto Week (GJAW) Exhibition.

The Coordinating Minister for Airlangga also hopes that the development of electric vehicles in Indonesia will become more massive going forward, along with the flow of investment from electric vehicle manufacturers, both 4-wheel and 2-wheel. In addition, the Coordinating Minister for Airlangga also invites all stakeholders to remain optimistic in achieving the sales target for electric vehicles as many as 400 thousand units by 2024.

Of course, the government will also continue to encourage the use of electric motorized vehicles, so that Indonesia can achieve its Net Zero Emission target in 2060.

Furthermore, the Government has issued initial incentives for electric motorcycle vehicles. The incentive amount is 7 million rupiah per unit for the purchase of 200,000 units of new electric motorbikes and 50,000 units of conventional to electric motorbikes. Giving priority to new electric motorbike incentives for productive people, including recipients of People's Business Credit (KUR), Micro Business Productive Assistance (BPUM), Wage Subsidy Assistance (BSU), including families receiving electricity subsidies (450VA and 900VA).

In terms of innovation, the world's car manufacturers are currently embedding fuel cell technology to make it more environmentally friendly. The application of New, Renewable Energy (EBT) and fuel cell technology needs to be continuously improved, so as to make Indonesia a vehicle production base with the latest technology and models while growing exports.

On this occasion, the Coordinating Minister for Airlangga expressed his appreciation to GAIKINDO for the implementation of GJAW 2023 which from the start was intended to showcase the development of the Indonesian automotive industry, build consumer demand, and create a strong market.

"The enthusiasm for this exhibition is certainly appreciated, because there are large amounts of third party funds in banking. And in this pandemic, figures from third party funds, especially deposits over 5 billion, have not been absorbed. So please the automotive industry, the property industry to absorb it because this will grow the national economy," concluded the Coordinating Minister for Airlangga.

Also present at the event included the Minister of Industry of the Republic of Indonesia, Secretary of the Coordinating Ministry for Economic Affairs, Deputy for Coordination of Commerce and Industry of the Coordinating Ministry for Economic Affairs, Director General of Metal, Machinery, Transportation Equipment and Electronics Industry Ministry of Industry, Chairman of GAIKINDO, Chair of the Organizers of the GJAW 2023 Exhibition, as well as the CEOs of APM industry representatives or automotive associations.

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