Friday 1 December 2023

Indonesia wants to excel in the automotive sector, this is a discourse on building national products and love for its own country


Indonesia is a country rich in natural mineral resources. Approximately 30 percent of the raw materials for making Electric Vehicle (EV) batteries are in Indonesia. By processing domestic materials, then exporting them in semi-finished or finished form, this will make us one of the important players in producing electric vehicle power or resources.

On the other hand, Indonesia, as a fertile market for various automotive companies, should be able to make its own country proud with production made nationally for the global market. So that in the end our country is not just a user, but a player. Namely parties who supply the supply chain of automotive materials and components, to producing finished products to be marketed to various countries.

Quoted by the Antara news agency from a conversation with automotive expert from the Bandung Institute of Technology, Yannes Martinus Pasaribu, Indonesia has the potential to make its name as one of the players in the world automotive industry.

President Joko Widodo inspects the car export process at Patimban Port, Subang Regency, West Java, Tuesday (8/3/2022). (Agus Suparto) For Indonesia, the automotive world is nothing new because since the early 19th century it has been part of the global automotive industry. That is when Indonesia’s dream of having a local automotive industry was instilled by policy makers in the 1950s, during the time of the Minister of Transportation of the Republic of Indonesia, Ir. Loah.

He founded the NV Indonesia Service Company (ISC), which had a dream that Indonesia would not become a “warung” that accommodates merchandise from foreign entrepreneurs and traders. However, do more concretely so that Indonesia has reliability in creating and marketing vehicles made in its own country.

Fast forward to the present, Indonesia has arrived in the EV market and the intention to become a major player in the era of electric cars continues to be announced. The habit of using foreign products has now become a challenge in forming the domestic vehicle ecosystem. Awareness to switch to domestic products must be intensified in various ways.

Among other things, promoting our own products to the local community until finally a national feeling of love for using domestic products is formed.

Gesits electric motorbike made in Indonesia which has been completely assembled at the PT Wika Industri Manufaktur (WIMA) factory, Cileungsi, Bogor Regency, West Java, Wednesday (27/10/2021) [ANTARA FOTO/Aditya Pradana Putra/rwa] Brand awareness This is important if you want to have a domestic automotive industry like countries in Asia in general which already have local and global automotive brands.

Local automotive brands are faced with a number of special challenges that will not be easy, but that does not mean they cannot be overcome.

As explained by Yannes Martinus Pasaribu, there are at least a series of challenges that the Government must face wisely if it really wants to have its own brand in the four-wheeled and two-wheeled automotive industry. Here’s the picture:

Indonesia must be able to focus on providing increased technological capabilities and innovation in the automotive industry, which involves steps such as acquiring or developing the latest technology to design, produce and market vehicles that can compete at the global level. Indonesia must also prepare various needs, especially in terms of qualified human resources (HR) in the fields of design, automotive engineering and manufacturing, marketing, and establishing collaborations with universities. This is an important step to provide a workforce that is ready to work in the automotive industry which is always required to continually update its features and technology. The existence of a policy or regulation that can provide positive growth for the local automotive industry such as the preparation of fiscal incentives, legal protection and regulations that support innovation. The Indonesian nation must be able to overcome barrier factors, such as public perception of better quality in imported vehicles, higher prices, and the need to increase government facility support for the Indonesian-made vehicle industry. There needs to be various strategic steps that can build awareness to change the mindset of local consumers through research, innovation and adoption of the latest technology by domestic manufacturers. How important it is for massive public campaigns and education to be carried out by the Government and industry associations to increase confidence in vehicles made in Indonesia in the future. Forms of support that can still be reached in in the near future, among other things, by issuing incentive policies and continuous affirmations. As a result, the less appreciative mindset that has been imprinted in the minds of consumers will be able to soften little by little. By implementing collaborative strategies between industry players, the Government and the community, gradually ‘Made in Indonesia’ vehicles can become the main choice of consumers domestic market that has global competitiveness. With the trend that is now moving into the realm of electrification in various parts of the world, Indonesia – if it intends to build its own automotive brand – also has to

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