President Jokowi: Face Electric Cars with Optimism

President Jokowi observed IIMS 2018 Exhibition, at Semeru Room, JI-Expo Kemayoran, Jakarta, Thursday (19/4). (Photo: PR/Jay)

President Joko “Jokowi” Widodo on Thursday (19/4) opened the Indonesia International Motor Show (IIMS) 2018, at Semeru Room JI-Expo Kemayoran, Jakarta.

In the introductory remarks, President Jokowi praised the theme for IIMS 2018 ‘Your Infinite Automotive Experience’ — as a support and commitment to the development of electric cars. “This clearly shows that the event organizer is much aware of Industrial Revolution 4.0 which is also heading towards automotive sector,” the President said.

The President also reminded that the Industrial Revolution 4.0 will give impacts in automotive sector caused by transition into electric cars because  the number of spare parts in electric car is only ten percent of regular car.  “It means if all cars in Indonesia have changed into electric cars, automotive industry will reduce by 10%,” President Jokowi said.

The President went on to say because electric car is much simpler than regular cars, thus they are much less needed to be repaired. “It means that in the future, the number of car workshop will also be much reduced,” said the President.

Another impact caused by e-commerce sector, according the President, is sharing economy. The President underlined the development of ride-sharing application like Go Car and Grab Car, in which customers can access car transport anytime anywhere by using apps on their mobile phones.

President Jokowi also explained that BMW car company is currently running an experiment namely BMW subscription car service and with this service, consumers pay monthly subscription and can access various BMW car models anytime using mobile applications. “We must anticipate this trend,” said President Jokowi.

However, President Jokowi told automotive industry not to be pessimistic about the trend. “I believe in Industrial Revolution 4.0, automotive sector will be growing. The number of workers needed in automotive sector and car transport sector will also increase,” President Jokowi said, adding that what will be changing is the type of work, and workers must adapt to that.

The President explained with ride-sharing trend, the public will have more options to public transportations. Public transportations are not just MRT, LRT, and Transjakarta. Public will also use public car (with ride-sharing system) that can be used constantly by a lot of people. “This means public car also has to receive service and be washed frequently. While car-washing business is labor intensive service,” the President said.

In addition to that, with use of 20 hours per day, certain cars will not last long and a car lifespan would be much shorter, from 10-12 years in regular use to 2-4 years. “It means car production should be increased,” said the President.

Therefore, President Jokowi expressed his belief that Industrial Revolution 4.0 will bring many opportunities to automotive industry  “We must be aware to the latest trend. We must be agile and ready,” the President emphasized. The President also expressed his optimism with Indonesia’s talent in automotive sector, Indonesia can work on the opportunities ahead.

Also attending the event were Minister of Industry Airlangga Hartarto, Cabinet Secretary Pramono Anung, and automotive industry players.