REPUBLIKA.CO.ID, JAKARTA -- Industry Minister M.S. Hidayat inaugurated the 100 thousandth shipment of PT Toyota Motor Manufacturing Indonesia (TMMIN)'s completely knocked down (CKD) component export.
"I would like to congratulate TMMIN for the inauguration of its 100 thousandth CKD container export. This is an achievement and a pride for us all," the minister stated at the ceremony held to see off the dispatch of the Toyota CKD container export here on Friday.
Hidayat stressed that his ministry will continue to encourage the development of the national automotive industry for the domestic market and exports.
He pointed out that the automotive industry in the country needed to have strong structure supported by component industries and reliable human resources.
The minister also called on the TMMIN to continue empowering local component industries and develop their human resources, so that its motor vehicle products will have high competitiveness in the domestic and global markets.
"As of now, locally manufactured automotive products have been exported to more than 80 countries. This indicates that the quality of motor vehicles produced in Indonesia is reliable, and hence, they are widely accepted in the global market," claimed the minister.
Based on data furnished by the Ministry of Industry, Indonesia's exports of completely built up (CBU) vehicles stood at 170 thousand in 2013, up 26.5 percent from that in 2012, which accounted for 125 thousand units.
Indonesia's CKD vehicle exports in 2013 reached 105 thousand, up 4.76 percent from that in 2012, which were 100 thousand units.
"By continuing to introduce Indonesia's mainstay products along with the increasing quality of automotive products, Indonesia's automotive exports will continue to increase in the future," the minister emphasized.
In the meantime, Secretary General of the Ministry of Industry Anshari Bukhari remarked last week that Indonesia is expected to become an industrialized country by 2035, with domestic industries contributing 29 percent to the country's gross domestic product (GDP).
"The development of industry is quite important for providing value-added products, enhancing jobs, and improving the people's welfare," Anshari Bukhari explained during a discussion on the National Industrial Development Master Plan (RIPIN) in Bali, last Saturday.
Bukhari added that although Indonesia was an agrarian country, the development of industry was urgently needed to add value to its agricultural products, so that job opportunities can be increased and the people's prosperity can be improved.
"Advanced countries like the United States and Japan have also consistently developed their agriculture sector in order to meet the domestic food needs," he claimed.
But, in order to become an advanced nation, they developed their industries, and now, the number of people working in the agricultural sector in the United States account for only three percent, and only several percent in Japan.
Therefore, Anshari believed that the development of industry should be given greater attention in the future. The government must be intensively involved, not only in the policy making sector but also in the development of facilities and infrastructures.
So far, several facilities and infrastructure needed by the people have been developed by private companies.
"In the future, the government should really play a role in the development of industry. Industrial development should not solely be left to market mechanisms," he added.
The Ministry of Industry was optimistic that by the year 2035, the nation's industrial infrastructure will become strong and have a highly competitive edge in the global market based on its innovation and technology.
Through the RIPIN, the Ministry of Industry has set itself a target that by the year 2035, the rate of the country's industrial growth will reach 9.03 percent, industrial contribution to the GDP set at 29.09 percent, non-oil and gas export contributions at 78.39 percent, import of raw materials will be cut by 20 percent from the current level of about 60-65 percent, and additional investment will be increased by as much as Rp2.8 thousand trillion.
Furthermore, by that year, the number of workers to be absorbed is expected to reach 29.2 million people, higher than the 14.9 million in 2014.
"So, we hope that a total of 800 thousand workers will be absorbed every year in the industrial sector," the secretary general stated.