Thursday, 22 October 2020 | 05:27 WIB

Indonesia Targets Motorcycle Export to Reach 600,000 Units

Indonesia Targets Motorcycle Exports to Reach 600,000 Units (fabric)

JAKARTA, NNC - The motorcycle industry in Indonesia is increasingly being active in penetrating the export market. This is inseparable from the rise in productivity of a number of motorcycle manufacturers in Indonesia, and shows that the quality of products made by the country is able to be competitive in the global arena.

"Moreover, Indonesia is one of the automotive production bases to meet the domestic and foreign markets. At present, we are the third largest market in the world after India and China," said Indonesia Minister of Industry Airlangga Hartarto in a press release received in Jakarta on Tuesday (04/12).

The Ministry of Industry noted that total motorcycle production in Indonesia reached 6 million units in 2017. And the number of exports as of October 2018 had penetrated 510,000 units.

"We are targeting motorcycle exports to reach 10 percent of total production. So, at least exports will reach 600,000 units for this year," said Airlangga.

The Minister of Industry said efforts to boost exports were one of the programs prioritized by the government at this time to reduce the trade balance deficit. In addition, it is in line with the implementation of the Making Indonesia 4.0 road map, which sets a target of increasing the export value of 10% by 2030.

"When Indonesia experienced a trade balance deficit, motorcycles actually contributed significantly, with the total export value of CBU, CKD and components amounting to US$1.2 billion in 2017," he explained.

For this reason, Airlangga expressed his appreciation to PT YIMM, which has successfully recorded total exports to date of 1.5 million units. In 2018, PT YIMM's exports are projected to penetrate 338,000 units, up more than 100% compared to exports two years ago, in 2016 amounting to 166,000 units.

"Yamaha CBU brand motorcycles are manufactured at PT YIMM, and 25% are allotted to meet the export market. The motorcycles are elivered to more than 45 developed and developing countries, with destinations including Asia, Europe, Africa, Latin America and Australia," he said.

Furthermore, the export value of PT YIMM this year is estimated at IDR13.2 trillion. The export performance significantly impacted the Indonesian economy, by recording a trade surplus of US$ 813.6 million or equivalent to IDR11.8 trillion. In fact, the level of domestic components (TKDN) in the production of PT YIMM has exceeded 94%.