Automotive component industry is believed to continue to develop, marked by soaring exports during January to July this year and the value of investments to reach US $ 4 billion.
Data Indonesian Automotive Industry Association showed exports of automotive components during the last 7 months of the year rose 8.8% from 29.5 million in the same period a portion of last year to 32.1 million pieces.
"The prospect of the automotive components industry is very promising due to motor vehicle sales continue to soar," said Chairman of the Automotive Components Industry Cooperative (KIKO) M. Kosasih to Business, Tuesday (4/9).
This component exports surge occurred since last year with a growth of 135 times with a total delivery of components abroad reached 48.17 million portion of portion 353 950 only in 2010.
Domestic automotive market this year showed a positive performance. Car sales in the first 7 months of this year reached 637 778 units and are forecast to exceed 1 million units by the end of the year although it is overshadowed by fears of the impact of the policy of raising the minimum down payment loans will lower motor vehicle sales.
Meanwhile, the motorcycle market started affected by the application of the regulation, characterized by a decrease in total sales during the first half of the year approximately 11%.
Office Manager Joint Industrial Tools and Motor Cars (GIAMM), M. Sjaffary reveal domestic automotive component market tends to remain stable and not yet felt the impact of the policy.
Automotive component industry in the country, said Kosasih, mostly to supply the assembly of new motor vehicles (original equipment manufactured), both for domestic and export needs.
"About 70% of automotive components supplied for the needs of OEMs and the rest for after-market needs," he said.
According to him, export growth component is evidence that domestic products can compete globally.
In July, exports of components peaked with 5.93 million total shipments of parts, or the highest in the history of the automotive component industry in Indonesia. Exports grew 42.67% compared to the same month of last year 4.17 million pieces.
Investment runway
According to the Ministry of Industry, the value of investments in the automotive component sector reached US $ 4 billion and is expected to continue to grow in line with the wishes of some of the main principals abroad to increase investment.
"Total investment in the automotive sector reached US $ 8 billion, respectively US $ 4 billion in industrial assembly and components," said Director General of High Technology-Based Leading Industry Ministry Budi Darmadi recently.
Component production capacity will increase with the opening of a factory owned by PT Unipres Indonesia, an affiliate company Marubeni Corporation, covering an area of 8 hectares in Cikampek, Karawang, West Java, at the end of last month.
PT Denso Indonesia also plans to build automotive components plant in Bekasi Fajar region with an investment estimated at US $ 200 million.