REPUBLIKA.CO.ID, JAKARTA -- Indonesia's automotive industry continues to increase as the country is predicted to be the largest automotive industry production base in Southeast Asia competing Thailand. According to Minister of Trade, Muhammad Lutfi, the indication is recorded from a total number of automotive industrial investment in the country, about 750 billion USD.

"The figure grows significantly up to 700 percent since 2009," Lutfi said when opening the Indonesia International Motor Show (IIMS) 2014 in Jakarta on Thursday.

Former Indonesian Ambassador to Japan said that the investment in automotive industry becomes important as it creates a domino effect. Government is preparing regulation for the development of automotive industry. The automotive manufacturers, which have produced more than two million units per year have to move its operation from Jakarta to Semarang or Banyuwangi, while if the production is more than three million units per year, the plant have to move to outside Java, such as East Kalimantan and South Sulawesi.

Indonesia's automotive sector has a positive trend in export figure. The export always recorded a surplus, both in finished or semi-finished products since 2012. The surplus is predicted to reach 2.5 billion USD in 2014. It will continue in the next few years.

Lutfi projected that the export of Indonesia's automotive industry would be 11 billion USD in 2019. The value is in line with the increase in labor force in Indonesia over the next three years.

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