JAKARTA - Indonesia and Japan continue to collaborate in efforts to develop the automotive industry, including encouraging the acceleration of the production of environmentally friendly vehicles. This strategic step was realized through a synergy between the Indonesian Ministry of Industry and the Japanese Ministry of Economy, Trade and Industry (METI).

"They provide an overview of the electric vehicle industry development. What we discussed, among other things is the development of the automotive industry of the two countries. In addition, trends and activities in the use of electric vehicles and the development of batteries in the world," said Director General of the Metal, Machinery, Transportation and Electronics Industry (ILMATE) Ministry of Industry, Harjanto at The 2nd Indonesia - Japan Automotive Dialogue in Bali, Friday (13) / 12).

In the transportation equipment sector, Japan is the largest investor in Indonesia until the third quarter of 2019, with a value of Rp 7.46 trillion. In the automotive sector, Japan is also one of the success stories of investors who want to continue investing their capital in the country, where Japanese automotive manufacturers on a global scale have made Indonesia a production base to meet the needs of the domestic market to export.

The potential of the automotive industry in Indonesia is currently supported by 18 four-wheeled motor vehicle manufacturers that have been operating with a production capacity of 2.26 million units per year and a workforce of 38 thousand people. In terms of national automotive production and sales, in 2013 to 2018 the average reached above 1.2 million units per year. This is certainly a lot of local component industries that also grow in line with the increase in production.

With the trend of the electric car industry in the global arena, Indonesia targets the production of electric-powered cars to reach 20 percent of total production in 2025 or around 400 thousand units. (LM)