JAKARTA (TheInsiderStories) - Minister of industry, Agus Gumiwan Kartasasmita, announced Japanese automotive giant companies plans to invest in Indonesia. In the meeting with various principals in Tokyo, Honda Motor Co., Ltd., was committed to investing Rp5.2 trillion (US$362.37 million) and Suzuki Motor Corp., plans to invest Rp1.2 trillion.
Earlier, Toyota Motor Corp., realized the existing investment around Rp28 trillion and Mitsubishi Motors Corp., aimed an investment plan of Rp11.2 trillion. He said, Honda is also committed to expanding the export vehicle component products as part of the global supply chain for Malaysia, Vietnam, Thailand, Pakistan, Saudi Arabia, and Japan.
The car-makers will also move its existing production facilities in India to Indonesia, as well as commit to developing electric cars in the country. Then, Honda will open export markets for new export destinations such as South Africa, Mexico, North America and South America. “They are developing a new model of motorized vehicle which will be produced in Indonesia and will be exported to 31 countries,” he continued.
Then, Suzuki’ investment in Indonesia will be the basis for the development of Suzuki Ertiga and Suzuki XL7 products, which were introduced as mild hybrid vehicles with integrated starter generator technology. These models are for export purposes for the Asian and Latin American markets, said the minister.
The company also has an electric vehicle (EV) roadmap and said that incentives from government policies are needed to increase the production. In the meeting with Toyota, said Kartasasmita, the manufacturer reported an investment commitment of Rp28 trillion and commitment to expand the export market, from 80 countries to 100 countries by 2024.
Kartasasmita also lobbied Mazda Motor Corp., to build a factory in Indonesia by conveying various investment conveniences and many incentives for new automotive investors in Indonesia. He hope on the next visit in May there is a progress from the auto company.
While, Mitsubishi is committed to increasing investment by Rp11.2 trillion by the end of 2025 with a projection of an increase in production capacity, from 220,000 to 250,000 units per year and will also develop two models of EVs.
Beside automotive sector, the minister also offers the development of Patimban Port in Subang, West Java, which was launched by President Joko Widodo in December 2020. Then, he also met with the petrochemical industry company, Sojitz Corp., to support the development of the methanol industry in Indonesia, especially the Bintuni Bay Project.
“They have an interest in participating in the methanol and ammonia project in the Bintuni Bay Industrial Area, West Papua,” he explained.
In addition, Kartasasmita also met with the minister of economy, trade and industry (METI) of Japan, Kajiyama Hiroshi, discussed the diplomatic relations between the two countries, especially in the case of the New MIDEC cooperation program under the IJEPA bilateral cooperation framework.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
