Video: Spare Parts Entrepreneurs on Prabowo's National Car Project

The Secretary General of the Indonesian Automotive Parts and Motorcycle Industry Association (GIAMM), Rachmad Basuki, stated that the scarcity and rising cost of imported raw materials, compounded by the weakening Rupiah exchange rate, have increased production costs for the automotive components business. Amid rising production costs and weakening purchasing power, GIAMM remains optimistic about the automotive components industry, given the still substantial prospects of the domestic market. Regarding the plan to develop a national car, GIAMM has confirmed the readiness of the components industry to support and meet domestic needs. The success of nationally produced automotive and motorcycle parts in penetrating export markets reflects the competitiveness of the domestic industry. Nevertheless, the Indonesian automotive components industry still faces competition from Chinese products, which benefit from a much larger production scale, making them more competitive.