Automotive Industry Profile No. Description 1. No. of car manufacturers 41 2. No. of Component 1.400 industries 3. Installed capacity/year 838.000 4. Labor forces 715.000
* Estimation 2012 Car Production and Sales
Car Export-Import Export CBU (Units) 85,796 107,932 160,000 CKD (Set) 55,624 83,709 103,040 Import (source: GAIKINDO) CBU (Units) 76,520 76,173 90,000 * : Estimation 2012
Automotive industry structure 4 Wheeler Structure Car Assemblers TOTAL Man Power (MP) = 715.000 People 20 Companies MP : 27.000 People Component Industry Tier 1 Component Industry Tier 2 and 3 Outlet, Workshop, Authorised Sales Service and Spare Parts Outlet, Workshop, Non- Authorised Sales Service and Spare Parts + 250 Companies MP : 48.000 People + 600 Companies MP : 40.000 People + 12.000 Authorized Outlet MP : + 240.000 People + 36.000 Non- Authorized Outlet MP : + 360.000 People
QUALITATIVE TARGET Production Base : MPV, Light Commercial Truck and environmental friendly vehicle. 50% motor cycle design. 2010 Manufacture of engine, MPV transmission and Light Commercial Truck. Component supplier for MPV and Light Commercial Truck. MPV, Commercial Truck up to 24 tons, SUV and small sedan energy saving and environmental friendly. 80% design of MPV and Light commercial truck. 2015 Manufacture of engine, transmission of Commercial Truck up to 24 tons, SUV and small economical small sedan. Component supplier of Commercial Truck up to 24 tons, SUV and small sedan. 2020 80% design of small sedan and SUV. Hybrid engine, integrated ECU system. MPV, SUV, Small sedan energy saving environmental friendly, Commercial truck > 24 tons, Medium sedan, Hybrid car. Component commercial truck > 24 tons, Medium sedan, Hybrid car. 2025 MPV, SUV, Small economical sedan, Commercial truck > 24 tons, Medium sedan, Hybrid car and Luxury car. 80% design of medium sedan. Manufacture of luxury car. Supplier of luxury car component.
BACKGROUND Indonesia's commitment to reduce carbon emissions by the year 2020 as follows: 26% on their own and 41% with the help of developed countries. Principle: If the carbon emissions can be reduced, the cars will produce cleaner emissions and will be burn fuel slightly (to save fuel consumption). The conversion program fossil fuel (petrol) to Gas (CNG) Development of motor vehicles with low carbon emission technologies such as electric cars, hybrid, fuel cell / petrol / advance diesel engines, dual petrol gas engine, CNG or a dedicated engine and bio fuel will reduce emissions and saving fuel.
Towards Low Carbon Emission Car Development 2011 2013 LCGC* Bio/Gas powered Car 2015 1,100 K + LCGC (120 K) = 1,220 K Vehicle Market GDP/ Capita Hybrid/Electric/FC * 1,300 K + LCGC (200 K) = 1,500 K Conventional (CV/PC) : 62% Green (CV/ PC) : 20% LCGC : 13% Hybrid : 5%* US$ 5,300* CV Based Platform Vehicle Market GDP/ Capita Conventional (CV/PC) : 70% Green (CV/PC) : 20% LCGC : 10% US$ 4,500 Vehicle Market GDP/ Capita 894 K units CV : 77% LC* > 60% PC : 23% LC < 60% US$ 3,500 CV = Commercial Vehicle PC = Passenger Car Regulation for Hybrid/Electric/FC should be issued at least 2 years before commercial production start.
FUTURE POLICY. Requirements For Incentives For Production: a. Using advanced technology diesel / petrol engines. dual petrol gas engine (CNG/LGV converter kit), Bio fuel engines, hybrid engines, CNG / LGV dedicated engine (Type I) b. Using advanced technology diesel / petrol engines. dual petrol gas engine (CNG/LGV converter kit), Bio fuel engines, hybrid engines, CNG / LGV dedicated engine (Type II) c. Fuel Consumption : - 20-28 km/liter (Type I) - More than 28 km/liter (Type II) d. Local Content : minimum 40% in 5 (five) years.
INCENTIVES FOR PRODUCTION: Luxury tax reduction of 25% for cars with using advanced technology diesel / petrol engines. dual petrol engine gas (CNG/ LGV converter kit), Bio fuel engines, hybrid engines, CNG / LGV dedicated engine (Type I) Luxury tax reduction of 50% for cars with using advanced technology diesel / petrol engines, Bio fuel engines, hybrid engines, CNG / LGV dedicated engine (Type II) Exemption of import duty on machinery production equipment, raw materials and components that are not produced domestically (Ministry of Finance Regulation No. 76/2012).
POLICY ON AUTOMOTIVE STANDARDISATION
Challenges : Secure investor confidence through establish and implement of regulation that promote sustainable development : Develop market surveillance system/regulation to secure consumer safety Improve fundamental of trade facilitation for Inter and Intra ASEAN Leading to promote ASEAN MRA and Asean Economic Community 2015 Promoting MRA and FTA with other trade partners Improve competitiveness of local automotive industry by encouraging Promoting an export from production base-supply chain Improving Indonesia as a leading industrial hub Align automotive product standards to international standards (i.e. upon UN/ECE adoption)
Progress of Automotive Standards, Technical Requirements and Regulation Harmonization in ASEAN ASEAN member states have agreed that the UNECE (United Nations Economic Commission for Europe) Regulations should be the basis for harmonisation of technical regulations of automotive in the ASEAN region. Currently, ASEAN has agreed on 19 regulations to be included in the draft of ASEAN MRA (Mutual Recognition Agreement).
ASEAN - Progress of Aligment of National Standards and Technical Requirements and Regulation with UN-ECE Regulations 19 UN-ECE regulations are agreed for priority harmonisation phase-1 by 2015 : A. 14 component and system 4-wheel vehicle namely: R13, series 11 (Braking System); R13H, series 00 (Braking for Passenger Car); R14, series 06 (Seatbelt Anchorage); R16, series 06 (Seatbelt); R17, series 07 (Seat); R25, series 04 (Head Restraint); R30, series 05 (Pneumatic Tyre Passenger); R43, series 00 (Safety Glass); R46, series 02 (Rear-view mirror); R49, series 05 (Emission for Heavy Vehicle); R51, series 02 (Noise Emission at least 4-wheel); R54, series 00 (Pneumatic Tyre Commercial); R79,series 01 (Steering Equipment); R83, series 05 (Emission for Light Vehicle). B. 5 component and system for motorcycle namely: R39, series 00 (Speedometer); R40, series 01 (exhaust emission, L Category); R41, series (noise); R60, series 01 (control telltale); R75, series 00 (Tyre, L Category).
Action Plan for Standard Harmonization MOI has a target to set up SNI equal to UNECE Regulation on 2015. Safety and environment is a main aspect in developing SNI base on UNECE Regulations.
Action Plan for Standard Harmonization Action Items Action Items Decide which UNECE Regulations to adopt by when. from the list from of the ACCSQ list of the APWG ACCSQ adoption plan - APWG 1 st step adoption plan 1 st step Specify Timing, Approval Authority, Technical Service for each UNECE Regulation to be adopted. Revise the existing national standards and regulations in line with the UNECE Regulations to be adopted, considering development of Vehicle Type Approval system in the future. Responsible Organization Responsible Organization MOI MOI MOT MOI MOT MOE Develop human resources, facilities & equipments for Technical Service candidates to meet the requirements of the UNECE Regulations. Develop and implement necessary procedures to verify and ensure Conformity of Production at all relevant parties. MOT MOT Prepare an organization structure to participate in WP29 activities and the budget to support. MOI? MOT?
In order to facilitate trade and investment flows, Indonesia should sign the UNECE 1958 Agreement in 2012, if possible, and adopt some of the relevant UNECE standards instead of SNI. Adhering to the Agreement, it will indeed bring great benefits for Indonesian consumers, manufacturers and authorities alike. MOI has a target to set up SNI equal to UNECE Regulation in 2015. Safety and environment are a main aspect in developing SNI base on UNECE Regulations.