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The Ministry of Industry encourages global car production

Rep: Rizky Jaramaya/c37
Otomotif
Republika/Adhi Wicaksono Otomotif

REPUBLIKA.CO.ID, JAKARTA -- The Director of Land Transport at Directorate General of IUBTT of the Ministry of Industry, Soerjono said, to boost exports in the automotive industry, Indonesia must produce global cars. The reason, the export of Indonesian automotive industry is still low and there is a tendency that the export will decrease next year.

"Next year our exports will drop, therefore we have to look for a new road or producing global cars," said Soerjono in Jakarta, Friday (1/5).

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Soerjono said, if the industry was not encouraged to produce global products then Indonesia would only be a market and import would explode. Currently, the types of cars exported by Indonesia have low level of fuel efficiency, while some countries in the world want a car with higher fuel efficiency or able to save fuel.

According to Soerjono, cars with high efficiency level using the front-wheel drive, which drain energy directly to the wheels so that energy is not wasted too much. In addition, the global car products using monocoque body so that the weight of the vehicle is lighter and stable.

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"Today, most cars in Indonesia are still using rear wheel drive and chassis, so the tendency is more severe," said Soerjono.

To encourage global car production, the Ministry of Industry is setting the pace in determining the incentives that will be given to automakers. Moreover, according to Soerjono, Fiscal Policy Office (BKF) has made a study of incentives for the automotive industry based on the size of the carbon or CO2 emitted by vehicles.

"I will have discussions with experts and thinking about incentives to meet the global car products with low CO2 levels and has a higher fuel economy," said Soerjono.

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