EMITENNEWS.COM – The Ministry of Industry considers the automotive sector to have a significant impact on the national economy. The automotive sector drives various supporting industries such as steel, rubber, plastics, metals, as well as transportation and logistics.
Minister of Industry Agus Gumiwang Kartasasmita explained that in 2024, the gross value added of the motor vehicle industry reached around Rp180 trillion. According to data from the Ministry of Industry, the sector has a backward linkage of 2.07 and a forward linkage of 2.4.
Backward linkage illustrates how much the automotive industry stimulates demand for upstream sectors such as steel and rubber. Meanwhile, forward linkage shows its contribution to downstream sectors such as transportation and logistics. The figures 2.07 and 2.4 mean that every Rp1 generated by the automotive industry creates an additional economic effect of Rp2.07 in upstream sectors and Rp2.4 in downstream sectors. Overall, the additional economic impact from this industry is estimated to reach Rp804 trillion.
Minister Agus said that the success of Indonesia’s automotive industry is reflected in Toyota Group’s achievement of exporting its three millionth vehicle from Indonesia. Toyota’s milestone is seen as proof of the resilience of Indonesia’s manufacturing sector, which continues to grow and remain competitive globally. Toyota Indonesia currently collaborates with more than 700 supplier companies and employs around 360,000 workers.
The Ministry of Industry also hopes that Toyota Indonesia will continue to support government programs in developing environmentally friendly vehicles and reducing carbon emissions. This effort is part of the broader transformation toward a sustainable industry.
The export milestone of three million vehicles is not only a national pride but also a momentum to accelerate the adoption of green technology in the automotive industry. The government aims for Indonesia to become a major player in low-emission vehicles in the Asian region.
In closing, the minister expressed his appreciation for Toyota Indonesia’s consistency in exporting products to more than 100 countries. (*)
