Friday 1 December 2023

Large Industries Invite Automotive SMEs to Partner, Create Opportunities to Enter the National Supply Chain


The Ministry of Industry collaborated with Astra through the Dharma Bhakti Astra Foundation (YDBA), PT Astra Daihatsu Motor, PT Kayaba Indonesia, and PT Patria Maritim Perkasa to hold a Transport Equipment IKM Partnership Coordination Forum with Large Industries.

In this event, the Ministry of Industry (Kemenperin) emphasized the importance of large automotive industries to partner with domestic small and medium industries (IKM). One of the goals is to create opportunities for SMEs to enter the national automotive industry supply chain.

Quoted from the Antara news agency, the partnership strategy between IKM and Tier APM in the automotive industry can in practice encourage the independence of IKM through market certainty, technology transfer, improving quality and quantity, management systems, improving human resources, and easy access to financing.

“For the large automotive industry, partnerships with IKM are able to support efforts to increase the Domestic Component Level (TKDN) of products produced,” said Reni Yanita, Director General of Small, Medium and Miscellaneous Industries (IKMA) at the Ministry of Industry.

Workers are assembling cars at an automotive factory [Antara] Quoted by the Antara news agency from Gaikindo and the Indonesian Motorcycle Industry Association or AISI, in January-October 2023, the number of domestic sales of four-wheeled vehicles or more has reached 836,048 units. Meanwhile, total domestic sales of two-wheeled vehicles reached 5,237,976 units, which reflects the still promising prospects for the automotive industry this year and next year.

“This can encourage the large automotive industry to increase production capacity and create opportunities for SMEs to enter the national automotive industry supply chain,” continued Reni Yanita.

With this market potential, the supply chain ecosystem for the domestic automotive industry needs to be strengthened, including through partnerships between large industries and domestic small and medium industries. As carried out by the Ministry of Industry through the Coordination Forum for Transportation Equipment IKM Partnerships with Large Industries.

Reni Yanita emphasized that commitment and cooperation from all parties is needed so that domestic industry, especially SMEs, can play a role in providing quality and competitive automotive components.

The event was also filled with various activities such as workshops, handing over certificates of facilitation from the Directorate General of IKMA, business meetings, signing Collaboration Commitments and handing over award plaques to transportation equipment industry players.

Reni Yanita said that the Link and Match Coordination Forum held by the Ministry of Industry was the annual routine agenda of the Directorate General of IKMA since 2017.

“Last year’s implementation resulted in an MoU between 16 Tier APMs and 32 IKMs which recorded a potential turnover value of IDR 105.2 billion ,” said Reni Yanita.

This activity provides an opportunity for SMEs to explore information regarding market potential and collaborations that can be explored with APM suppliers and large industries.

On the other hand, APM suppliers can obtain information about the potential of SMEs that can be used as part of the supply chain.

Meanwhile, the Government has the opportunity to obtain input regarding the need for SME development that can be carried out in the future.

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