Component industry development vital: Gaikindo<\/p>\n
By Matthew Allen<\/p>\n
GAIKINDO, the Association of Indonesia's Automotive
\nIndustries, has called upon the government to help create a
\npositive economic climate for the development of Indonesia's
\ncomponents industry.<\/p>\n
It claims that without a viable supplier industry capable of
\nproducing components in volume the car industry's progress will
\nbe stunted.<\/p>\n
The chairman of Gaikindo, Mr Herman Latief, said that the
\ngrowth of the supporting industries in Indonesia was lagging
\nbehind.<\/p>\n
He said a key reason behind the government's national car
\nprogram was to enhance the development of the supporting
\nindustries.<\/p>\n
However, the national car program requires volume sales for
\nthe supporting industries to survive.<\/p>\n
\"You need volume to push certain segments in the supporting
\nindustries,\" Herman said.<\/p>\n
\"The main priority issue in the automotive industry whether it
\nbe Mitsubishi or Toyota is the supporting industries.<\/p>\n
\"In Indonesia we have only 91 supporting companies plus their
\nsuppliers and that is only 119.<\/p>\n
\"Normally one car maker has hundreds of supporting companies.<\/p>\n
\"Even for the first layer of supporting companies you need
\nthousands of second layer supporting companies.\"<\/p>\n
Thailand has around 350 supporting companies, Malaysia around
\n250, the Philippines 191.<\/p>\n
\"We are behind and we must catch up,\" Herman said.<\/p>\n
Car-makers are responsible for between 30 to 40 per cent of
\nthe in-house content of their vehicles while the remainder must
\nbe sourced from out-house companies.<\/p>\n
However, Herman said in order for these companies to want to
\ninvest in large scale volume production they needed to be
\nguaranteed volume sales.<\/p>\n
Herman, who is also the vice president of PT Krama Yudha Tiga
\nBerlian Motors, the sole distributor of Mitsubishi Motors in
\nIndonesia, said that his company will continue to concentrate its
\ninvestment on its in-house components.<\/p>\n
\"There is confidence for our investment in the in-house
\nsuppliers, but for the out-house it is just not efficient for us
\nto invest in everything.<\/p>\n
\"If the supplier companies can supply us with quality cost
\ndelivery (QCD) there is no problem we will purchase that
\nproduct.\"<\/p>\n
The general manager of PT Tjahja Sakti Motor Corporation,
\nBintoro Tjitrowirjo, also agreed with Herman that the development
\nof supplier industries is crucial for volume brands like Isuzu
\nand Daihatsu.<\/p>\n
\"If we talk about the Isuzu Panther I think our commitment to
\nthe suppliers is very important,\" Bintoro said.<\/p>\n
\"The quality and commitment to delivery is the problem that is
\nwhy sometimes we have to do it in-house because one car has
\n20,000 parts and when one part is not available well ...<\/p>\n
\"We facilitate capital and technology programs for our large
\nand small suppliers to prevent problems in delivery and quality.\"<\/p>\n
Likewise the director sales, marketing, service and parts for
\nPT General Motors Buana Indonesia, Terry Johnsson, said that
\nthrough the QF9000 supplier programs they were certifying
\ncompanies for global standards.<\/p>\n
Meanwhile, it appears the requests for assistance by the car-
\nmakers have not fallen on deaf ears.<\/p>\n
Earlier this week at a special Cabinet session, President
\nSoeharto instructed the Minister for Finance and the governor of
\nBank Indonesia to examine ways of funding local component
\nsuppliers.<\/p>\n
According to newspaper reports the instruction related to
\ncompanies supplying the Timor ''national'' car but any support
\nfor the components industry would be likely to benefit most car-
\nmakers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/component-industry-development-vital-gaikindo-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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