GAIKINDO: Government Should Enforce Euro4 Standard

euro4bJAKARTA— The Association of Indonesia Automotive Industry (GAIKINDO) requests the Government to overcome a number of obstacles, in order for these efforts to encourage the automotive industry. To that end, GAIKINDO advises the Government, among others, to the end the gap between Euro2 Standard implemented in Indonesia and the Euro4 that countries of export destinations have adopted for cars manufactured in Indonesia.

“We are concerned about accelerating the adoption of Euro4 in Indonesia,” said Chairman of GAIKINDO Mr Yohannes Nangoi in Jakarta, Monday, 8 August 2016. He said that after a meeting with the Minister of Industry Mr Airlangga Hartarto at the office of the Ministry of Industry.

Some car models produced in Indonesia have been exported to several countries that have already adopted the Euro4 Emission Standard, while Indonesia is still left behind with Euro2. This gap forces automotive manufacturers in Indonesia to install multiple production lines. One is for the production of cars for domestic market (Euro2), the other line (Euro4) is only for export. This is a total waste.

Car sales during the first half of 2016 reached 530,000 units. GAIKINDO expects sales in 2016 will reach 1.05 million units (up from 2015 as many as 1.01 million units). Mr Nangoi expects new car variants will help drive the car market in the second half of 2016.

Director General of Metal, Machinery, Transport, and the Ministry of Industry Eleletronika I Gusti Putu Suryawirawan said to have received signals from GAIKINDO. Some of the obstacles and automotive industry inputs have been recognised, some have already been processed, and will be discussed at a higher level. (*)