In 2019, the Industry Ministry recorded that the around 1,500 automotive component companies in Indonesia employed about 3 million workers.
By
Kompas Team
·3 minutes read
Kompas/Heru Sri Kumoro
The MG 5 EV electric car exhibited at the 2021 Gaikindo Indonesia International Auto Show (GIIAS) automotive exhibition at ICE BSD, Tangerang, Banten, Sunday (11/21/2021).
JAKARTA, KOMPAS — The transition to low-carbon and environmentally friendly vehicles is becoming a challenge to automotive industrialists in the country. They are preparing to welcome the era of vehicle electrification with several strategies so that the transition will not cause too great a disruption of the automotive supply chain.
The Association of Automobile and Motorcycle Component Industries (GIAMM) predicts that vehicle electrification will have an impact on more than 47 percent of the total of automobile and motorcycle component industries in Indonesia today. In 2019, the Industry Ministry recorded that the around 1,500 automotive component companies in Indonesia employed about 3 million workers.
Corporate affairs director of PT Toyota Motor Manufacturing Indonesia (TMMIN), Bob Azam, said the transition to environmentally friendly vehicles would be inevitable. Automotive industrial players were striving to carry out the transition in phases so as not to create too severe a disruption of the supply chain.
“Everything will change. The funding, production system, technology, manpower, the supply chain from the upstream to downstream will be disrupted. It should therefore be prepared for from now on in phases. It cannot be directly done right away, the industries have to be made ready. The government should have a clear road map,” said Bob on Wednesday (17/11/2021).
He cited examples of the transition from manual to automatic cars and from conventional to low-cost green cars (LCGC).
Chairman V of the Indonesian Automotive Industries Association (Gaikindo), Shodiq Wicaksono, hoped that the transition would take place in a natural way and would not give rise to disruption harmful to automotive component industries. He cited examples of the transition from manual to automatic cars and from conventional to low-cost green cars (LCGC).
LUDOVIC MARIN/POOL/AFP
French President Emmanuel Macron looks at the engine of the electric version of the Renault 4L to mark the 60th anniversary of the model bearing the logo 'Presidence de la republique' on the door, during his visit to the site of the future factory of Japan-based battery maker Envision AESC group, where Renault SA develops an electric-vehicle manufacturing hub, in Douai, northern France, on June 28, 2021. - It is expected to be announced during the "Choose France" event that Renault SA has chosen Envision AESC to produce batteries in the future Douai plant, that will equip its future electric vehicles, including the Renault 5 model. The Douai battery factory will complement Renault's electric car hub known as "Renault ElectriCity" born from pooling three of its plants in northern France, Douai, Ruitz and Maubeuge.
The several vehicle component groups to be replaced due to electrification include vehicle engines, oil supply tanks and exhaust valves that regulate the release of exhaust gas from vehicle engine combustion. Meanwhile, the component groups that will not be replaced but need adjustments include brakes, electronic components, drivetrains that transmit power from engines to vehicle wheels as well as air-conditioning units and compressors.
The components that will still be used in electric vehicles include wheels and tires, the steering system, suspensions, batteries, car interiors and exteriors and the lighting system.
GIAMM general chairman Hamdhani Dzulkarnaen Salim said there would be component types that could be developed such as batteries, inverters and chargers. “We see it as an opportunity rather than constraint,” he added.
A number of small and medium component industrial players in regions have welcomed the change. Faizal Amri Elfas, 37, the owner of PT FNF Metalindo Utama in Tegal, Central Java, described the change to electric vehicles as having no significant effect on the demand for metals and iron.
He was confident that his company could utilize the opportunity and remain a supplier of the automotive industry’s component needs.
In the meantime, metal industrial players in Ngingas, Waru district, Sidoarjo, East Java, expressed the hope that they would be involved in the production of components or spare parts of electric vehicles. They stated their readiness for transformation.
Kompas/Totok Wijayanto
Grab Car is charging its electric car at the public electric vehicle charging station (SPKLU) in the yard of the Greater Jakarta PLN Distribution Office, Jakarta, Monday (22/11/2021).
Hundreds of business units are producing vehicle spare parts in the center. “Only a small number belonging to the market of genuine spare parts have partnership with original manufacturers,” said the chairman of the village-owned enterprise, Ngingas Makmur Abadi, alongside small and medium-sized metal industrialist Zaenudin Arifin. (AGE/XTI/NIK)
