Indonesia Strengthens Automotive Collaboration with Japanese Companies

INTI- Tokyo, Indonesia and Japan have long maintained a comprehensive partnership in the automotive sector, as demonstrated by the significant investments made by Japanese automotive principals in the country. To further enhance this collaboration, the Ministry of Industry (Kemenperin) has initiated communications with Japanese automotive industry players to encourage investment in Indonesia.

During the first day of his visit to Japan on June 5-7, 2023, Minister of Industry Agus Gumiwang Kartasasmita held meetings with two automotive companies, Mazda Motor Corporation and Mitsubishi Fuso Truck and Bus Corporation. "In both meetings, we discussed expanding cooperation in the automotive field. With Mazda, we discussed their investment commitment, which is planned to commence in 2024," said the Minister in Tokyo, Japan, on Monday (June 5).

"The Ministry of Industry appreciates Mazda's investment plan in Indonesia. We aim to ensure Mazda's production plans in Indonesia and encourage them to make Indonesia a production base in the ASEAN and Australia regions," Agus added.

Mazda holds a significant market share in Australia. In 2022, Mazda sold 95,718 units in Australia, making it the second-highest after Toyota. Mazda's products in Australia include the CX-5 (27,062 units), BT-50 (12,937 units), and Mazda CX-3 (11,907 units), with the majority being imported from Thailand.

Minister Agus also encouraged Mazda to participate in Indonesia's Electric Vehicle (EV) acceleration program. "We hope Mazda considers the Mazda MX-30 (EV) as one of the line-ups to be produced in Indonesia," he stated.

Hironoki Tanaka, Managing Executive Officer of Mazda Motor Corporation, mentioned that Mazda is currently making its second visit to Indonesia. It is expected that through this visit, the company will soon determine the models to be produced in its new factory.

Electrification of Commercial Vehicles

Meanwhile, the meeting with Mitsubishi Fuso Truck and Bus Corporation discussed the electrification of commercial vehicles produced by the specialized commercial vehicle principal. Minister Agus expressed appreciation for Fuso's electrification plans in Indonesia. Currently, Fuso has started Proof of Concept (PoC) activities in Indonesia with the aim of introducing eCanter to the country in the future. "We support Fuso's efforts to introduce commercial vehicles with electrification technology in Indonesia," Agus stated.

During the meeting, the Ministry of Industry continues to encourage Fuso to increase the use of domestic components in the assembly process, expand its product lines and types of vehicles manufactured in Indonesia, and explore export markets, particularly in ASEAN countries and Australia. Moreover, Australia currently does not have an automotive industry.

Fuso's sales in Australia reached 4,196 units in 2021 (1,452 units of medium-duty and 2,744 units of light-duty) and 4,219 units in 2022 (1,318 units of medium-duty and 2,901 units of light-duty), all imported from Japan. Minister Agus added that the commercial vehicle market in ASEAN and Australia is significant, with ASEAN sales of this vehicle type reaching 1,212,885 units in 2022, and 303,741 units in Australia.

Minister Agus emphasized that the Indonesian Government continues to urge Japanese automotive industry players to increase the local content of their products, including spare parts and components in the manufacturing process. "By doing so, the automotive industry can obtain incentives that will support their business activities in Indonesia," concluded the Minister. ***.Hans