Automotive Industry’s role in Indonesian economy amidst global challenges
Indonesia Business Post
Minister of Industry, Agus Gumiwang Kartasasmita, says that the automotive industry has a crucial role in boosting the national economy amidst serious challenges due to the dynamics of global geopolitics.
"Of course, in general, in the future, the economy through the manufacturing industry will face very unique and difficult challenges. Why? Because we see the political dynamics after Trump returned to office as U.S. president," Agus said while addressing the opening of the 2025 Indonesia International Motor Show (IIMS) exhibition at JIExpo, Kemayoran, Jakarta, on Thursday, February 13, 2025.
According to Agus, this condition will affect the domestic industry, including the automotive sector, as well as the national economy as a whole. The challenges faced by the manufacturing industry do not only come from external factors, but also internal factors that appropriate regulations are needed to strengthen the national industry.
He emphasized that the government is paying special attention to the domestic automotive industry. This is evidenced by the presence of two ministers at the opening of IIMS 2025.
"The government pays extraordinary attention to the automotive sector and IIMS is attended by two ministers. Based on IIMS 2024 data, an extraordinary achievement was recorded with total sales reaching 19,200 units with a transaction value of Rp6.7 trillion," he cited.
Agus also highlighted the significant spike in the number of visitors to IIMS 2024 which reached more than 560 thousand people, up 54.5 percent compared to the previous year. This data shows the increasing public interest in the automotive industry in Indonesia.
Minister of Industry, Agus Gumiwang Kartasasmita, says that the automotive industry has a crucial role in boosting the national economy amidst serious challenges due to the dynamics of global geopolitics.
"Of course, in general, in the future, the economy through the manufacturing industry will face very unique and difficult challenges. Why? Because we see the political dynamics after Trump returned to office as U.S. president," Agus said while addressing the opening of the 2025 Indonesia International Motor Show (IIMS) exhibition at JIExpo, Kemayoran, Jakarta, on Thursday, February 13, 2025.
According to Agus, this condition will affect the domestic industry, including the automotive sector, as well as the national economy as a whole. The challenges faced by the manufacturing industry do not only come from external factors, but also internal factors that appropriate regulations are needed to strengthen the national industry.
He emphasized that the government is paying special attention to the domestic automotive industry. This is evidenced by the presence of two ministers at the opening of IIMS 2025.
"The government pays extraordinary attention to the automotive sector and IIMS is attended by two ministers. Based on IIMS 2024 data, an extraordinary achievement was recorded with total sales reaching 19,200 units with a transaction value of Rp6.7 trillion," he cited.
Agus also highlighted the significant spike in the number of visitors to IIMS 2024 which reached more than 560 thousand people, up 54.5 percent compared to the previous year. This data shows the increasing public interest in the automotive industry in Indonesia.
Increasing TKDN
To overcome the existing challenges, Agus encouraged the strengthening of the domestic automotive industry so that it can be more independent in meeting domestic market needs and expanding export reach.
"We also remind you not to only import, but also encourage the strengthening of domestic production, including increasing the Local Contents (TKDN) to empower the national industry, especially the small and medium industry sector. After that, we can explore the export market," he concluded.
To overcome the existing challenges, Agus encouraged the strengthening of the domestic automotive industry so that it can be more independent in meeting domestic market needs and expanding export reach.
"We also remind you not to only import, but also encourage the strengthening of domestic production, including increasing the Local Contents (TKDN) to empower the national industry, especially the small and medium industry sector. After that, we can explore the export market," he concluded.
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