21 Februari 2008
Minister asks automotive firms not to make own components

JAKARTA, The Point Industry Minister Fahmi Idris has called on automotive industry players not to make their own components but should instead support the growth of domestic component industry.

Idris said large automotive companies should give the local component industry a chance to grow so that they can strengthen the industry structure and turn Indonesia as production center for automotive products.

"Our concept is that Indonesia must become a production base. The companies (large automotive companies) must make Indonesia a production center for both domestic and export consumption," Idris said here Wednesday.

Idris said the existence of a special port for automotive will pave the way for Indonesia to become an automotive production center, thus increasing component demand and boosting component industry growth.
"Don't make everything on your own, you should give it to players on mat sector," he said.

Idris said the number of automotive component players in the country continues to grow and that other supporting industries such as state steel producer Krakatau Steel (KS) should also be involved in helping boost the country's component industry.

The minister said he had asked KS to complete its production facilities so it can supply the automotive industry, for example, steel for automotive body parts.

Meanwhile, the ministry's director general for transportation equipment industry and telematics (IATT) Budi Darmadi admitted Indonesia still lacks the capability to produce external body parts for automotive as it does not have the technology.
"We don't have the technology to produce fine automotive body parts with the right thickness," he said.
Today, around 246' component producers are operating in Indonesia. (BOT)

Source : The Point, Page : 11 

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