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Industry minister: Automotive industry becomes mainstay of national economy

22 February 2021 11:31

JAKARTA - The automotive industry is one of the mainstay sectors that has a significant contribution to the national economy. Currently, there are 22 companies in the motor vehicle industry with four or more wheels in Indonesia.

"This sector has contributed an investment value of IDR 99.16 trillion with a total production capacity of 2.35 million units per year and absorbs 38.39 thousand direct labor," said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Friday (19 / 2).

The Minister of Industry also stated that the potential for two and three-wheeled motor vehicle industry in the country currently has 26 companies. The total investment value that has been disbursed is IDR 10.05 trillion with a production capacity of 9.53 million units per year and absorbs up to 32 thousand workers. Meanwhile, shipments for completely knock  down (CKD) vehicles totaled 53.03 thousand sets or valued at IDR 1.23 trillion, and components as many as 61.2 million pieces or valued at IDR 17.52 trillion.

Agus emphasized that in order to boost productivity, sales and the competitiveness of the national automotive industry due to the impact of the Covid-19 pandemic, the government has launched various policies or stimuli for this sector. For example, the incentive to reduce PPnBM for motorized vehicles in the vehicle segment with CC below 1500, namely for the sedan and 4x2 categories. (LM)

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