Economy & Industry News

Car Manufacturers Need to Develop Industry in Indonesia

JAKARTA— Car manufacturers selling their products in Indonesian market are suggested that they build industry base in Indonesia. At least, they need to develop manufacturing facility to produce car components in the country for the companies’ efficiency. Car manufacturers that solely sell cars in Indonesia will face hardship out of stiff competition with competitors that have supporting manufactures in Indonesia.

Ministry of Industry Mr Saleh Husin expressed such view in his response to the closure of Ford’s business in Indonesia (PT Ford Motor Indonesia, FMI) early 2016. FMI is a company that distributes Ford brands in Indonesia, importing the entire products (CBU) from Thailand and the Philippines.

“FMI is a brand holder agent (APM) that act as a distributor, in which the entire cars were imported. The company does not develop any production base Indonesia— not even component production, which does not give significant contribution to Indonesian industry,” said the Minister in Jakarta, Tuesday, 26 January 2016.

“Ford is losing its grip against its competitors that have developed component manufacturing bases in Indonesia. Principals that are determined to build component industry here are those that posses long business orientation, serious,” the Ministry said.

He emphasized, it is important for car manufacturers to develop production base in Indonesia to win competition once they decide to run business in the country. “Don’t only sale cars,” he stressed. (*)