Breaking News


Indonesian and Japanese Ministers Discuss Strengthening Automotive Industry Cooperation

Tokyo, June 23, 2024, The Europe Today: Industry Minister Agus Gumiwang Kartasasmita met with Japanese Minister of Economy, Trade, and Industry Ken Saito in Tokyo to explore avenues for enhanced cooperation in the manufacturing sector, particularly in the automotive industry.

In a press release on Sunday, the Industry Ministry of Indonesia detailed Kartasasmita’s appreciation for the ongoing positive contributions of Japanese automotive companies to Indonesia’s automotive production ecosystem. He noted their significant role in integrating small and medium industries into the broader automotive supply chain.

Given the favorable conditions, Kartasasmita advocated for increased collaboration with Japan in developing Indonesia’s electric vehicle (EV) ecosystem. He emphasized the substantial opportunity for Japanese automotive firms to address the current gap in per capita automotive consumption in Indonesia.

“Currently, the car ownership ratio in Indonesia is 99 cars per 1,000 population. I believe in the near future, it can be pushed to reach 150 cars per 1,000 population,” Kartasasmita stated.

Beyond automotive industry cooperation, Kartasasmita also pushed for strengthened partnerships in the energy transition sector. This follows a December 2023 meeting between President Joko Widodo and Japanese Prime Minister Fumio Kishida, where priority projects in energy transition were discussed.

Kartasasmita underscored the importance of finalizing the Protocol Amending the Indonesia–Japan Economic Partnership Agreement (IJEPA), highlighting its strategic role for both nations. He also pointed to the New MIDEC (Manufacturing Industry Development Center) collaboration program as a critical component of IJEPA.

The minister called for support from Japan’s Ministry of Economy, Trade, and Industry to expedite the implementation of IJEPA and the New MIDEC activities.

During their meeting last Friday, June 21st, the ministers also addressed cooperation in industrial human resources development. Kartasasmita highlighted plans for an exchange program that would enable Indonesian workers to participate in specialized training programs in Japan, thereby acquiring advanced knowledge and skills.

Minister Saito welcomed the proposals for increased cooperation, noting that his ministry allocates budgets to foster partnerships with Global South countries. He acknowledged the importance of Indonesia as a base for Japanese automotive production and exports, emphasizing the mutual benefits of Japanese investment in Indonesia’s automotive sector.

The two ministers are scheduled to reconvene in August to further discuss cooperation in their respective industrial sectors.