RI parts sector sees promising growth<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
With electronic and automotive products still in high demand the
\nIndonesian parts industry will see high growth next year, a
\nJapanese trade organization official says.<\/p>\n
\"The parts industry here could grow bigger, on the condition
\nthat it can enhance its technology, precision and the delivery of
\nits products,\" Japan External Trade Organization deputy leader
\nIto Noritada said recently.<\/p>\n
His organization brought 44 potential Japanese investors to a
\ntwo-day electronics and automotive parts expo in Jakarta last
\nweek. The potential investors met with 78 local parts producers
\nduring the event.<\/p>\n
Several of the foreign investors at the expo said remedying
\nIndonesia's high-cost economy, eliminating illegal fees and
\nintroducing tax holidays would also help boost the industry.<\/p>\n
PT Indonesia Epson International president director Tokihiro
\nOkubo said the main requirements for competing in the global auto
\nparts market were quality and delivery.<\/p>\n
In the past, the country's parts industry has grown slower
\nthan the electronics and automotive industries, resulting in
\nmassive imports of parts.<\/p>\n
However, in the last three years the industry has seen steady
\ngrowth and its exports now exceed imports in terms of value.<\/p>\n
The Ministry of Industry estimates the electronics parts
\nindustry will grow by 13.2 percent in the next five years, while
\nthe automotive parts industry will grow by 14.8 percent.<\/p>\n
Currently, the domestic motorcycle manufacturing industry is
\nusing 90 percent locally made parts in its production. This year,
\nassociations expect to sell five million motorcycles on the
\ndomestic market.<\/p>\n
Electronics and automotive manufacturers still see late
\ndeliveries and inconsistency in the quality and precision of
\nparts as hampering the growth of the domestic parts industry.<\/p>\n
According to data from the Ministry of Industry, in 1995
\nIndonesia imported US$10 billion and exported $2.3 billion worth
\nof electronics and automotive parts, while last year it imported
\n$3.5 billion and exported $4.6 billion worth of parts.<\/p>\n
Last year, exports amounted to $4.8 billion while imports
\nreached $4.4 billion. As of May 2005, exports reached $2.4
\nbillion and imports were at $2.7 billion.<\/p>\n
Indonesia's leading parts producer, PT Astra Otoparts (AOP),
\nfor example, exports an average of $7 million worth of batteries,
\nof which a large part goes to the Middle East and Africa.<\/p>\n
\"We are trying to penetrate the market with other products
\nsuch as shock absorbers,\" said AOP president director Budi S.
\nPranoto.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-parts-sector-sees-promising-growth-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}