Indonesian Automotive Export Growth Helps Boost Forex Reserves

The Indonesian automotive industry continues to demonstrate its competitiveness in the global arena by increasing exports to other countries.

IDXChannel - The Indonesian automotive industry continues to demonstrate its competitiveness in the global arena by increasing exports to other countries.

Apart from being a production hub, Indonesia is also an export hub for a number of well-known automotive manufacturers in the country.

"This positive step can certainly accelerate national economic growth. Moreover, the national four-wheeled vehicle manufacturing industry has succeeded in becoming a foreign exchange hero," said Minister of Industry Agus Gumiwang Kartasasmita in a written statement, Wednesday (14/6/2023).

Agus explained that the automotive industry was able to export 166 thousand units of completely built up (CBU) cars in the January-April 2023 period, an increase of 26 percent compared to the same period in 2022.

The total value of CBU exports from January to April reached USD 2.06 billion, an increase of 27.9 percent compared to the same period in 2022.

"So, it can be concluded that the development of the automotive sector is already moving in the right direction," he said.

One of the most important car manufacturers in Indonesia is PT Toyota Motor Manufacturing Indonesia (TMMIN). It has been in Indonesia for more than 50 years.

"For more than 50 years, Toyota Indonesia's contribution can be seen from its investment achievements, workers and exports," said Agus.

Currently, TMMIN's production capacity reaches 320 thousand units per year. Moreover, 440 thousand engine units and parts are produced in four factories in Karawang and Sunter.

"Toyota Indonesia's total investment until 2022 is Rp77.9 trillion, and it is committed to increasing its investment by Rp27.1 trillion until 2026. The number of its workforce so far has reached 8,003 employees," said Agus. (WHY)