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Indonesian automotive manufacturers support Jokowi's vision. But, they say that the government also needs to lend a hand. (Image via The News Wheel)
To reach 1 mil car exports, the government needs to cooperate as well: TMMIN
Recently, the President of Indonesia, Joko Widodo, generally known as Jokowi, set a bold target for all Indonesian automotive manufacturers to break. By 2024, he wants the number of automotive export to break 1 million units. Jokowi believed that with a target, the national automotive industry will strive even further.While the domestic car manufacturers show optimism toward the target, they know that they cannot do this alone. The Indonesian government should also lend a hand.
On Monday, Director of Administration, Communication, and External Relations of Toyota Motor Manufacturing Indonesia (TMMIN), Bob Azam, pointed out that while the target is not impossible, the domestic manufacturers will need assistance from the government.
To crank more export, Bob said through a text message that the Indonesian government should expand the free trade agreement (FTA) and mutual relation agreement (MRA) from bilateral to multilateral relations to countries that have not been reached yet.
Judging from the condition of the global economy amid the trade war between the United States (U.S) and China and three years of domestic market’s stagnancy, TMIIN’s Director of Administration also could not promise that Toyota Indonesia will be able to reach the 1-million target by 2024.
Nevertheless, Bob said that he supports Jokowi’s target for the Indonesian automotive industry.
The Association of Indonesia Automotive Industry (GAIKINDO) tabulated that in 2018, completely built unit (CBU) vehicle export reached 264,553 units. While in 2019, the number increased to 275.364 units from January to October.
Gaikindo’s co-chairman, Jongkie D. Sugiarto, pointed out that the principals of each sole agent (APM) will determine the future of automotive exports. Moreover, it is also up to Indonesia’s capability to answer to the global demand. Currently, the world demands more sedans and sport utility vehicles (SUVs).
Source: https://bit.ly/36S3kEr
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