Heaptalk, Jakarta — The Gaikindo Indonesia International Auto Show 2021 (GIIAS 2021) is officially launched on Thursday, 11 November 2021, at ICE BSD City in Tangerang by Coordinating Minister for the Economy Airlangga Hartarto. With the launch of the only Indonesian international automotive event that has full support from the world automotive association, it is expected to open the faucet of automotive products selling to fulfill both domestic and international (export) demand.
Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs, believes that by bringing the automobile industry back to the international stage as held in GIIAS 2021, Indonesia will be able to demonstrate a substantial trend of economic growth. The highest economic index hit 57.2 percent in the last Q3 or October 2021. Therefore he is extremely enthusiastic that in Q4 it may achieve growth of more than 5 percent, or reach up to more than 60 percent.
“In terms of year-on-year economic growth, if we look back to last year, when the pandemic was severe in Indonesia, economic growth was recorded at 4%. Our cumulative sales in the automotive sector fell to 530,000 last year, but this year could exceed 850,000 units. We predict that the exports will reach 300,000 by the end of the year, up from 220,000 last year “Airlangga stated.
Airlangga also stated that, despite the absence from GIIAS last year, currently it has resulted in many positive changes, which will inevitably benefit the future development of the national automotive industry. According to the Nikkei, Indonesia is ranked 41 in terms of the Covid19 Recovery Index. This indicates that Indonesia is improving in terms of Covid transmission cases per day.
“As of November 2021, Indonesia had reduced the ratio of virus transmission to less than 500 per day, down from more than 1000 per day the previous year. This also places Indonesia at the top of ASEAN’s Covid transmission ratio “Airlangga stated.
Government support for the national automotive industry
One of the most important government efforts is to monitor and make appropriate decisions in dealing with the spread of Covid. Airlangga refers to it as a gas-brake approach, as is common in the automotive industry. He also ascertained that President Joko Widodo’s decision was appropriate in controlling the spread of cases, which indirectly affected the recovery of the automotive industry.
Meanwhile, according to Yohannes Nangoi, General Chairperson of GAIKINDO, the automotive industry will absorb 1.5 million workers again by 2021, followed by an increase in supporting industrial businesses, component industries, financial services, dealers, workshops, and MSME companies. another automotive sector that also absorbs workers.
Furthermore, the government has implemented a cheap-in policy by providing a stimulus in the form of a hard case in order to revitalize the automotive industry sector. This is due to the Sales Tax on Luxury Goods (PPNBM) absorption capacity of 2.99T. So that a total of 1.37T can be realized by six national factories for both production and R&D purposes.
Moreover, policies governing exhaust emissions are also well-appreciated, as they have an impact on climate change by improving the quality of emissions. The policy is maintaining the quality of B30, and the supply of palm oil raw materials, which is part of the automotive supercycle, has reached the highest number of 1,200. This also benefits farmers, who can sell at the highest prices of 2,800 – 3,000.
This has an impact on the development of diesel engine converter technology, which has become a catalyst in Europe. Because the technology is simple to implement, namely by utilizing the dissolved UREA Solution, so the diesel exhaust-based industry should be put more attention.
“The exhaust must also be cultivated so that the knock is reduced. Public relations is for the industry. We must keep the emissions constant”, Airlangga stated.
“Of course, we hope that this exhibition will encourage future exhibitions in the automotive industry. The multiplayer effect is strong. New automobiles are being introduced on a regular basis. There are also electric vehicles. It is hoped that the electric vehicle supply chain ecosystem will grow. Nickel, cobalt, and manganese will rise in price,” said Airlangga.
The sales target
Gaikindo admits that the target for this year’s car sales has been raised from 750.00 to 850,000 units. The pronouncement is aligned with positive developments in the economy, health, and public acceptance of vehicle needs. This was stated by Gaikindo General Chair Yohannes Nangoi in response to the Coordinating Minister for Economic Affairs Airlangga Hartarto’s statement regarding the projected annual sales when GIIAS 2021 opens.
“Minister Airlangga did indeed obtain the target from me. The name was the goal from the start, but as we see the current situation with PPnBM-DTP improving, we will raise it (target) “Nangoi stated on Thursday (11/11/2021) in BSD City, Tangerang.
“I believe this is executable,” Nangoi added. Furthermore, he stated that the country’s total year-to-date car sales are rapidly increasing.
