Auto industry told to upgrade<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Over the past five years the local automotive industry has grown
\nfast, and this is expected to prompt industry players to start
\nfocusing on their ability to fully design and engineer
\nmotorcycles by 2009, as well as increase the use of local content
\nin cars.<\/p>\n
A senior Ministry of Industry official Agus Tjahajana said on
\nMonday that assemblers and their supporting industries, which are
\nmostly small and medium enterprises, must work together to build
\nup their competencies in automotive engineering and technology.<\/p>\n
\"As for the government, we will encourage industry players to
\nboost their research and development divisions and provide
\nincentives for them,\" he said on the sidelines of a seminar on
\nthe development of automotive components industry in Indonesia.<\/p>\n
\"When investors ask the government about what kind of
\nincentive we can give them, the answer is actually the country's
\nbig market. Security, among other things, is the real problem for
\ninvestors,\" he added.<\/p>\n
PT Astra Otoparts Tbk president director Budi S. Pranoto said
\nthat the component industry should focus on engineering and
\ntechnology.<\/p>\n
\"If we only rely on manpower, we won't be competitive enough
\ncompared to other countries such as China and Vietnam,\" he said.
\n\"Therefore, we must involve academicians and the government in
\ndeveloping the technology.\"<\/p>\n
Astra Otoparts held the seminar to coincide with a two-day
\nexhibition of its 28 subsidiaries on their progress in the
\ncomponent industry.<\/p>\n
A total of 483,000 cars and nearly 4.1 million motorcycles
\nwere sold last year. This year the automotive industry expects to
\nsell 520,000 cars and five million motorcycles.<\/p>\n
The targets may even be surpassed, considering that for the
\ncar market alone the Association of Indonesian Automotive
\nManufacturers (Gaikindo) has recorded sales of 143,986 units.<\/p>\n
\"The fact that Indonesia is the third biggest market for
\nmotorcycles after China and India shows that we can penetrate
\nAsian markets with self-made components,\" Budi said.<\/p>\n
He added that the government should set up national standards
\nfor component industry.<\/p>\n
\"By having standards, we will eventually improve the quality
\nof our components.\"<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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