Jakarta (ANTARA) - Automotive expert from the Bandung Institute of\nTechnology (ITB), Yannes Martinus Pasaribu, stated that the order of\n105,000 pickup truck units from India has the potential to diminish the\nrole of the domestic manufacturing industry.<\/p>\n
\u201cAgrinas\u2019 procurement of 105,000 commercial vehicles from India is a\ncontroversial step in accelerating food logistics. On a macro scale,\nthis process of cannibalising the domestic industry triggers early\ndeindustrialisation because the volume is almost equivalent to 100 per\ncent of the national pickup truck market, which risks weakening the\nautomotive industry in the local market,\u201d said Yannes Martinus Pasaribu\non Tuesday.<\/p>\n
Consequently, their opportunity to develop with these vehicle orders\nis hindered.<\/p>\n
Not only does it hinder the opportunity for domestic component\nsuppliers to develop, but the procurement of vehicles from outside\nIndonesia is also feared to have an impact on job losses in the\nmanufacturing sector.<\/p>\n
\u201cSocially, this potentially threatens the sustainability of 6,000\nworkers who are at risk of being laid off as a logical consequence of\nthe decline in mass production volume at assembly plants and tier two or\nthree vendors,\u201d he said.<\/p>\n
Chairman of Gaikindo, Putu Juli Ardika, said that if the government\nutilises vehicles produced domestically, it has the potential to have a\nsignificant impact on the advancement of the industry amidst the\nincreasingly challenging pressures year after year.<\/p>\n
\u201cAt the very least, we all hope to advance this automotive industry\ntogether. Because the impact is far-reaching,\u201d said Putu Juli Ardika in\nJakarta on Monday (23 February).<\/p>\n
According to him, the automotive industry\u2019s ability to accommodate\nthe government\u2019s desire to provide commercial vehicles can still be\nmanaged because the capacity is not fully utilised.<\/p>\n
\u201cAnd we have capacity that can still be used. Our capacity is 2.59\nmillion and our production is only 1.3 million. And if this is\nencouraged, it will definitely have a very significant impact on our\nindustry. Because if this industry develops, we can maintain jobs,\u201d he\nsaid.<\/p>\n
The government\u2019s confidence in providing domestic commercial vehicles\nis considered to provide an opportunity for the automotive industry in\nthe commercial sector to develop much better.<\/p>\n
Not only will this create more job opportunities, but investment in\nthe automotive sector, especially in the commercial industry, will also\ncontinue to grow.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indian-pickup-truck-imports-threaten-indonesias-domestic-automotive-industry-1771936323", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }