JAKARTA, KOMPAS.com – Discussions about national cars (mobnas) were later linked to vehicles such as AMMDes (Rural Multipurpose Mechanical Devices). Although the discussion on the definition of national cars is still confusing, this phrase is a marker of domestic industry pride.
But the matter of the designation of the Indonesian national car, the Ministry of Industry (Kemenperin) is less amenable. This was revealed by the Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) Herjanto in Jakarta on Sunday (11/18/2018).
"I myself have not received a direction to talk about the national car. If we talk about national car, there are incentives that follow, specifically. As far as I know the definition of national car here is rich in LCC (Low Cost Green Car) cars, so what is the definition of national car? "The national car is interpreted as a car with high local content, that is LCGC," Herjanto said.
Herjanto stressed that the government encouraged the creation of new brands, such as AMMDes. The development of vehicles made by PT Kiat Mahesa Wintor Indonesia (KMWI) is explained quite quickly because it utilizes the availability of industrial components from tier one to tier three.
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To remember, the era of the mobnas appeared in the 90s with the Technology of the People's Car Industry (Timor). Even Timor was reinforced by President Soeharto's instructions at the time which resulted in sanctions from the World Trade Organization (WTO) which considered Indonesia in violation of the General Aggrement of Tariff and Trade (GATT) provisions, reports from Japanese brands.
This also makes the government not want to carry out discriminatory development like it did before. Herjanto revealed that currently the government, not only automotive, is trying to have a pattern of developing the "most favorite nation" because Indonesia has become a member of world trade.
"This means that we develop any sector, not just automotive, there must be no discriminatory process. If there are discriminatory principles, they will be brought to the WTO panel, "Herjanto said.
"It is not the national car (AMMDes). We are developing local brands. "For the national car, if it is said that the national car is as if there is a special intervention there," said Herjanto.
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The government's approach is more on the ability of the component industry to develop new brands such as AMMDes. Herjanto estimates that the national car title is often associated with LCGC because the approach to local content is high, as well as its contribution to state revenues, which include emissions, fuel use and tax revenues.
"That is in accordance with the ideals of Making Indonesia 4.0, which was delivered by Pak Airlangga (Minister of Industry) and President. Want to make five sectors; "automotive, electronics, textiles, beverages and food and chemical products," said Herjanto.