GAIKINDO: Domestic Industry Capable of Meeting Commercial Vehicle Demand
Jakarta (ANTARA) - The Association of Indonesian Automotive Industries (GAIKINDO) has affirmed that the domestic motor vehicle industry has the capacity to meet the country's commercial vehicle needs, following the government's plan to import commercial vehicles from India.
GAIKINDO Chairman Putu Juli Ardika said in Jakarta on Friday that association members and supporting industries are deemed capable of meeting the demand, provided they are given adequate time.
"GAIKINDO members and their supporting industries, including automotive component manufacturers grouped under GIAMM, have the production capacity to meet this demand. However, adequate time is needed to fulfil the required quantities and specifications," Putu said.
GAIKINDO currently comprises 61 automotive companies with a total production capacity of 2.5 million four-wheeled or larger vehicles per year. For lower-to-mid-range commercial vehicles such as pick-ups specifically, national production capacity is said to exceed 400,000 units per year, though this has not been fully utilised.
According to the association, 4x2-drive commercial vehicles produced domestically already have a Local Content Level (TKDN) exceeding 40 per cent and are capable of meeting public demand across various regions, supported by an extensive after-sales service network. For 4x4-drive vehicles, the domestic industry is said to be capable of production but would require preparation time.
GAIKINDO noted that domestic motor vehicle sales in recent years have remained below one million units per year. Meanwhile, vehicle exports from Indonesia to 93 countries have exceeded 518,000 units.
Putu added that optimising domestic production is expected to sustain the industry, which involves approximately 1.5 million workers across its entire ecosystem.
He expressed hope that GAIKINDO members, together with the Association of Automotive Parts and Accessories Industries (GIAMM), would be given the opportunity to participate in meeting national commercial vehicle demand in order to optimise production capacity.
"We hope to be able to participate so that we can optimise production capacity and avoid workforce reductions caused by declining market demand over the past several years," Putu said.
GAIKINDO Chairman Putu Juli Ardika said in Jakarta on Friday that association members and supporting industries are deemed capable of meeting the demand, provided they are given adequate time.
"GAIKINDO members and their supporting industries, including automotive component manufacturers grouped under GIAMM, have the production capacity to meet this demand. However, adequate time is needed to fulfil the required quantities and specifications," Putu said.
GAIKINDO currently comprises 61 automotive companies with a total production capacity of 2.5 million four-wheeled or larger vehicles per year. For lower-to-mid-range commercial vehicles such as pick-ups specifically, national production capacity is said to exceed 400,000 units per year, though this has not been fully utilised.
According to the association, 4x2-drive commercial vehicles produced domestically already have a Local Content Level (TKDN) exceeding 40 per cent and are capable of meeting public demand across various regions, supported by an extensive after-sales service network. For 4x4-drive vehicles, the domestic industry is said to be capable of production but would require preparation time.
GAIKINDO noted that domestic motor vehicle sales in recent years have remained below one million units per year. Meanwhile, vehicle exports from Indonesia to 93 countries have exceeded 518,000 units.
Putu added that optimising domestic production is expected to sustain the industry, which involves approximately 1.5 million workers across its entire ecosystem.
He expressed hope that GAIKINDO members, together with the Association of Automotive Parts and Accessories Industries (GIAMM), would be given the opportunity to participate in meeting national commercial vehicle demand in order to optimise production capacity.
"We hope to be able to participate so that we can optimise production capacity and avoid workforce reductions caused by declining market demand over the past several years," Putu said.