The Japan Bank for International Cooperation (JBIC) and the Indonesia International Automotive Proving Ground (IIAPG) Consortium approved a IDR 889 billion (US$ 57.87 million) loan agreement in Tokyo on March 1, 2023.
Minister of Transportation Budi Karya Sumadi personally witnessed the symbolic collaboration between the two nations. The establishment of the testing ground is to enhance the competitiveness of the domestic automotive sector.
“The development of a proving ground has a very strategic meaning to meet the demand for automotive products both domestically and for the export market,” Sumadi said at the ministry’s website dephub.go.id.
PT Gobel International, PT Bintang Pradipa Persada, PT Astra Daihatsu Motor, Toyota Tsusho Corporation and the Japanese Overseas Infrastructure Investment Cooperation for Transport & Urban Development (JOIN) from Japan are also part of the consortium.
Increase standardization
The development of a testing ground is significant in improving the uniformity of vehicles manufactured and marketed in Indonesia, particularly in terms of safety, security, comfort and reduced carbon emissions for a more eco-friendly approach.
“With the signing of the loan agreement today, it is a good step to speed up the proving ground development process earlier this year, and is targeted to be completed by the end of this year,” Sumadi said.
The minister aspired that the partnership in constructing the testing facility would reinforce the established 65-year-old diplomatic ties between Indonesia and Japan.
IIAPG’s President Director Hiramsyah Sambudhy Thaib also highlighted that the testing ground could significantly contribute to the advancement of the domestic automotive industry and may even elevate Indonesia’s position to a leadership role in the ASEAN region’s automotive sector, Antara news agency reported.
“This proving ground is a prestigious project because the national automotive industry is becoming more modern in terms of technology, safety and comfort for vehicles, as well as environmental impacts,” he said.
Meanwhile, Deputy Speaker of the House of Representatives (DPR)’s Coordinator for Industry and Development (Korinbang) Rachmat Gobel, who also witnessed the signing, said the proving ground project would further strengthen mutually beneficial relations between the two countries. He added that the proving ground would also improve the Japanese automotive industry, which is mostly in Indonesia.
“The consortium’s success in winning this project was not easy because they had to compete with consortiums from China and Korea. Hopefully the proving ground can have a soft launch in November 2023 which will mark 65 years of Indonesia-Japan diplomatic relations this year,” Gobel said, as quoted by kontan.co.id.
