Tuesday, 11 May 2021 | 19:51 WIB

Automotive Sector Growth Creates Multiplier Effect

The initial launching of Wintor export to Malaysia

JAKARTA, NETRALNEWS.COM - The government, through the Ministry of Industry, says the growth of the automotive industry gives a wide multiplier effect, so it is important to spur the growth of this industry in Indonesia.

"In addition to creating economic activities in assembling and component manufacturing activities, it also generates economic activities in the distribution sector until the after-sales service activities," said Director General of Metal, Machinery, Transportation and Electronics Industry at the Ministry of Industry, I Gusti Putu Suryawirawan on Sunday (7/30/2017).

Putu said the potential of the automotive market in the country is quite large and has a tendency to increase every year, where total vehicle production in 2016 reached 1.17 million units and sales reached 1.06 million units.

The Ministry also noted that car exports (CBU) in the period from January to June 2017 stood at 113,269 units, or an increase over the same period in 2016 of 94,000 units.

Meanwhile, motorcycle exports for the period of January-June 2017 totaled 185,093 units, a growth compared to the same period in 2016 of 143,992 units.

"We hope that Indonesia is not only a production base but also as an export hub of vehicles, especially transportation equipment in ASEAN and global regional markets so that in the end it can increase foreign exchange revenue," Putu said.

"With its many advantages, Wintor is ready to enter the international market by targeting Malaysia as the second largest palm oil plantation in the world, after Indonesia," he added.