Remarks of President of the Republic of Indonesia at the Opening of the 2021 Hybrid Indonesia International Motor Show, 15 April 2021, from the State Palace, Jakarta
Assalamu’alaikum warahmatullahi wabarakatuh,
May peace be upon us all,
Greetings of Virtue.
Distinguished Speaker of the People’s Consultative Assembly (MPR) who is also Chairperson of the Indonesia Motor Association (IMI) Bambang Soesatyo;
Distinguished Ministers of the Indonesia Onward Cabinet, including Minister of Industry, Minister of Tourism, and Cabinet Secretary;
Distinguished Chairperson of the Indonesian Chamber of Commerce and Industry;
Distinguished President Director of Dyandra Promosindo, Heads of association of automotive supporting industry, and participants of this event;
Distinguished Ladies and Gentlemen.
Actually, I want to be physically present at this year’s Indonesia International Motor Show because I want the automotive industry in Indonesia to immediately rebound from the COVID-19 pandemic. It is also my fervent hope that the industry will absorb more labors and stimulate the MSMEs (Micro, Small, and Medium-sized Enterprises) industry, as well as to boost Indonesia’s export in global market.
Nevertheless, we must remind ourselves that we are still living in a pandemic. We must remain vigilant against the COVID-19 pandemic, yet we should not stop stimulating the economy by taking into account vigilance and mindfulness. The balance between “gas and brake pedals” in handling the health and economic sectors must be maintained to ensure people’s health and to stimulate the economy.
Automotive industry has become an engine that drives the national economy that must be accelerated. It is because the industry involves numerous domestic enterprises. Participation of MSMEs (Micro, Small, and Medium-sized Enterprises) in the industry’s supply chain must be increased, while value added for domestic economy must be prioritized. The most important thing is the absorption of local labor and improvement of people’s welfare, which become our goals.
In addition, we must begin transformation into a green technology. Green technology is predicted to become our mainstay considering our huge potentials in this sector. The use of renewable energy such as B30, B100 must be carried on. Development of electric vehicle (EV) must also be accelerated which is expected to become one of the country’s priority industrial sectors.
Distinguished business players in automotive industry,
It is our priority to attract more investment to automotive industry. The Government continues to strive to improve Indonesia’s investment climate. We have issued the Job Creation Law. We have also established the Indonesia Investment Authority (INA) which is expected to provide ease and certainty to the investor in doing business in Indonesia. The Government has also launched a policy to relax tax to boost product sales and increase people’s purchasing power in automotive sector, as well as to boost demand that can stimulate the automotive industry.
Before entering this room, I have received report from Minister of Industry. What is the percentage increase for the purchase orders? There is a 190-percent increase in the purchase orders. It indicates that the products are not in stock and the production soars, meaning that the automotive industry has revived.
In addition, Indonesia’s Purchasing Managers’ Index (PMI) based on IHS Markit’s survey was recorded at 53 percent, while Bank Indonesia’s Prompt Manufacturing Index has reached 55 percent. Before the pandemic, the figure only reached 51; it is such a leap.
We must maintain the revival of automotive industry amid the COVID-19 pandemic which currently shows no sign of abating. Do remain vigilant. Many countries have suppressed COVID-19 active cases, but when they were not able to maintain their vigilance, the cases have soared again. Thus, we must maintain it. January saw Indonesia’s daily COVID-19 positive cases at the range of 13,000, 14,000, and 15,000 cases. We managed to reduce the figure in the next following three weeks to the range of 6,000, 5,000, and 4,000 cases; the figure was fluctuated within the range. We should be able to maintain the figure so that the cases continue to decline. Indonesia’s recovery rate also exceeded 90 percent, 90.5 percent to be exact. It is above the global average recovery rate and Asia’s average recovery rate. This must be maintained.
To that end, the Government also expressed hope that production capacity in automotive industry is to be further increased. Once again, we hope the production capacity in automotive industry is to be further increased through the utilization of local content. The industry should not only be focused in domestic market but also to enter global market. I have noticed the ongoing progress, yet we want it to be further improved.
Distinguished Ladies and Gentlemen,
Through this exhibition, Indonesia’s good reputation in automotive industry will be established. The event also reflected our preparedness to host the international automotive events, including MotoGP to be held in Mandalika, Formula E in Jakarta, and other international events.
That concludes my remarks.
By saying bismillahirrahmanirrahim, I declare the Indonesia International Motor Show officially open today.
Wassalamu’alaikum warahmatullahi wabarakatuh. (RAS/MUR)