Indonesian automotive giants are asked to partner with local small and medium industries (IKM), one of which is to create opportunities for SMEs to enter the national automotive supply chain.
Reporting from data from Gaikindo and AISI in January-October 2023, the number of domestic sales of four-wheeled vehicles or more has reached 836,048 units and total domestic sales of two-wheeled vehicles is 5,237,976 units, which reflects the prospects for the automotive industry which is still stable. promising this year and the years to come.
“This can encourage the large automotive industry to increase production capacity and create opportunities for SMEs to enter the national automotive industry supply chain,” said Director General of Small, Medium and Miscellaneous Industries (IKMA) of the Ministry of Industry, Reni Yanita, in Jakarta, Wednesday ( 11/29/2023).
With this market potential, the supply chain ecosystem for the domestic automotive industry needs to be strengthened, including through partnerships between large industries and domestic small and medium industries as carried out by the Ministry of Industry through the Coordination Forum for Transport Equipment IKM Partnerships with Large Industries.
Reni also emphasized that commitment and cooperation from all parties is needed so that domestic industry, especially SMEs, can play a role in providing quality and competitive automotive components.
The partnership strategy between IKM and Tier APM in the automotive industry can in practice encourage the independence of IKM through market certainty, technology transfer, improving quality and quantity, management systems, improving human resources, and easy access to financing.
“As for the large automotive industry, partnerships with SMEs are able to support efforts to increase the Domestic Component Level (TKDN) of products produced,” he explained.
In the Coordination Forum for Transportation Equipment IKM Partnerships with Large Industries, the Ministry of Industry collaborated with Astra through the Dharma Bhakti Astra Foundation (YDBA), PT Astra Daihatsu Motor, PT Kayaba Indonesia, and PT Patria Maritim Perkasa.
The event was also filled with various activities such as workshops, handing over certificates of facilitation from the Directorate General of IKMA, business meetings, signing Collaboration Commitments and handing over award plaques to transportation equipment industry players.
Reni added, the Link and Match Coordination Forum is an annual routine agenda of the Directorate General of IKMA which has been held since 2017.
“In last year’s implementation, this activity resulted in an MoU between 16 APM Tiers and 32 IKM which recorded a potential turnover value of IDR 105, 2 billion,” he explained.
This activity provides an opportunity for SMEs to explore information regarding market potential and collaborations that can be explored with APM suppliers and large industries.
On the other hand, APM suppliers can obtain information about the potential of SMEs that can be used as part of the supply chain. Meanwhile, the Government has the opportunity to get input regarding the need for SME development that can be carried out in the future.