Indonesia’s automotive industry is embracing technological advancements in its bid to meet President Prabowo Subianto’s vision of producing a fully localized car. This drive for "Made in Indonesia" vehicles focuses on utilizing domestic resources and cutting-edge technologies to manufacture vehicles with a high percentage of local components. By prioritizing the use of locally sourced materials and components, the industry aims to create a more sustainable and competitive automotive ecosystem.

At the opening of the 2024 Mandiri Utama Finance GAIKINDO Jakarta Auto Week (MUFGJAW), held on November 22, Minister of Industry Agus Gumiwang Kartasasmita highlighted the automotive sector’s progress. He applauded the efforts of GAIKINDO and local automotive manufacturers who are working to respond to the President’s challenge of developing a national car. This challenge calls for vehicles that are not only designed in Indonesia but are also built with locally sourced materials, a step that will boost the industry’s technological capabilities and contribute to national economic growth.

One of the critical achievements in this drive is the increase in the use of local components, with the domestic content level now surpassing 70%. This milestone signals that the Indonesian automotive industry is well on its way to achieving the President’s vision, which is underpinned by the rapid technological advancements in design and manufacturing processes. By harnessing local talent and technology, the sector is laying the foundation for the creation of high-tech vehicles that meet global standards.

Emphasizing local purchasing not only strengthens the technological capabilities of the automotive industry but also helps to create a more robust and competitive domestic market. Through advanced manufacturing technologies and streamlined processes, the industry is positioning itself to meet the growing demand for high-quality vehicles while keeping production costs competitive. These steps will not only improve the quality of domestic vehicles but will also enhance Indonesia’s ability to compete in the global automotive arena.

In addition, Minister Gumiwang highlighted that Indonesia’s large consumer base and the country’s growing technological expertise are essential assets in achieving this goal. The local automotive industry is well-positioned to design and produce vehicles using advanced technology, making the development of an Indonesian car a realistic and attainable goal. The president’s vision of a fully localized car reflects the growing importance of technology in Indonesia’s automotive sector.

Despite the advancements, the automotive industry is still facing challenges such as higher interest rates and increased registration fees. These issues have led to a revision of sales targets for 2024, with GAIKINDO adjusting its national car sales forecast from 1.1 million units to 850,000 units. However, the government is exploring ways to mitigate these challenges by creating incentive programs aimed at supporting the industry’s growth and ensuring its long-term technological progress.

The 2024 MUFGJAW event, which runs from November 22 to December 1, is an important moment for the Indonesian automotive sector. The exhibition features the latest technological advancements from over 80 automotive brands, including passenger vehicles, motorcycles, and supporting industry technologies. These innovations reflect the industry's commitment to advancing both the quality and technological capabilities of locally manufactured vehicles.

As Indonesia’s automotive industry continues to grow and evolve, technology will play an increasingly vital role. The industry’s focus on high-tech, locally sourced components will not only drive economic growth but will also position Indonesia as a key player in the global automotive market.