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Oleh Wawan Budiyanto, Kamis, 27 April 2017 | 14:32 WIB - Redaktur: Penni Patmawati Rusman - 1K
Cikarang, InfoPublik – Industry Minister Airlangga Hartarto had targeted Indonesia to produce 2.5 million four-wheel vehicles in 2020 and to absorb more manpower.
Minister Airlangga stated that the national annual production of four-wheel vehicle reaches 1.1 million and two-wheel vehicle reaches 6.5 million. About 400 thousand vehicles are exported every year. Even more, this industry could absorb about 3 million labours in Indonesia.
“Automotive industry has absorbed 3 million labours in Indonesia. Besides that, we have targeted the national production of four-wheel vehicle to produce 2.5 million units in 2020,” said Airlangga in the inauguration of Mitsubishi Motor Krama Yudha Indonesia (MMKI) factory in Cikarang, Tuesday (4/25).
He added that the investment of MMKI could give significant impact to the growth of automotive industry in Indonesia and contribute greatly to the national economy.
“Moreover, there are three large automotive industries in this cluster, namely Mitsubishi Motors, Suzuki, and Wuling,” he said.
In 2016, the contribution of means of transportation industry subsector (including automotive industry) to the gross domestic product of non-oil and gas sector reached 10.47 percent. It ranked third after food and beverage industry subsector (32.84 percent) and metal, computer, electronic, optical, and electricity equipment industry subsector (10.71 percent).
Airlangga explained that MMKI total investment reached Rp7.5 billion. This new factory occupies 51 hectares of land with production capacity of 160 thousand units per year which will be increased to 240 thousand units per year. It also involves 212 tier-1 local suppliers and 369 tier-2 local suppliers.
“This measure would improve domestic automotive and component industries competitiveness,” he said.
He also explained that the construction of MMKI’s new factory is a proof of commitment of Mitsubishi Motors Corporation and its business partners which have been established in Indonesia since 1970.
"It also makes Indonesia as one of Mitsubishi's production bases for the world market, where one of its flagship products, Mitsubishi Colt Diesel, have sold one million units," he said. (Translator: Erik Limantara)
