Local Petrochemical Industry Capable of Supplying Automotive Raw Materials


JAKARTA— Domestic petrochemical industry just made a breakthrough to meet the needs of raw materials for the automotive industry components. PT Chandra Asri Petrochemical Tbk (CAP) began supplying polypropylene impact copolymer resin for PT Toyota Motor Manufacturing Indonesia (TMMIN), which will be applied to Toyota Vios and Yaris.

“This step is in line with that of the Ministry of Industry to deepen the national industrial structure to strengthen the value chain from upstream to downstream to reduce dependence on imported raw materials,” said Industry Minister Mr Airlangga Hartanto.

According to the Minister of Industry, the cooperation between the CAP and TMMIN encourages growth of vehicle component industry in Indonesia. “Domestically, there are currently about 1,500 automotive component companies in Indonesia, which are divided into tier 1 to 3,” he said.

National automotive industry is currently able to meet the need of domestic component level (DCL) using some 60 per cents of local raw materials. Even the low cost and green car (LCGC) has reached 80-90 per cents of local content. “We will continue to push up to 90 per cents in 2018-2019 using raw materials of local plastic and steel,” he said.

In the eyes of the government, the automotive industry is considered as one of the priority sectors in the national industrial policy. The government is targeting production will reach 2.5 million units in 2020. (*)