Imported Raw Materials Hurt Local Spare Part Industry
16 April 2015 18:52 WIB
TEMPO.CO, Jakarta - Automotive spare parts industry in West Java is experiencing a downturn as imported raw material prices continue to increase in line with the weakening Rupiah exchange rate against US Dollar.
Some of the imported raw materials include aluminum, plastic pellets, and rubber-based components. Dewa Yuniardi, Chief of Communication of the Domestic Automotive Industry Association, said that the increase in raw material prices was not followed by the increase of spare part prices.
Dewa asserted that the condition has resulted in decreasing demands for aftermarket components. In addition, locally-produced automotive components are losing to imported products in the market.
Dewa also regretted the fact that domestically-sourced raw materials continued to be exported when it was supposed to be used to supply domestic spare part companies.
"The condition occurs because the government continues to consider Indonesia as a market for imported goods. If this continues, locally-produced automotive components will never improve," Dewa said.
ADI GINANJAR MAULANA | AFIF PERMANA