Minister: Esemka to Boost Regional Economic Growth

TEMPO.CO, Boyolali - Industry Minister Airlangga Hartarto positively welcomed the inauguration of Esemka car assembly plant in Boyolali, Central Java. He said the presence of the factory will drive the regional economy indirectly, especially in the local component sector.

“Of course it’s positive with a car priced under Rp200 million,” said Airlangga in the factory, in Boyolali, Central Java, Friday, September 6.

According to the minister, the first product, a light commercial car, can be utilized for various sectors, starting from freight to passenger transportation. “Markets in the region have open opportunities, moreover it has a competitive price,” he said.

Also, the factory will open opportunities for local component industry to contribute to the car production.

“The car factory will surely need component suppliers. And I think the local industry can meet it,” he said.

Esemka, Minister Airlangga went on, is coordinating with many local component industries, including the chassis, tire, machine and transmission block. “Some of them have been exhibited by Industry Ministry in Jakarta several times ago,” he added.

Airlangga underlined that the government will help to maximize industry development as a support to the car production. "This (the support) also applies to other industries. It's a part of our efforts to reach the export target of 1 million units in 2025."

Reports say that President Joko Widodo or Jokowi will inaugurate Esemka car assembly plant today, September 6, in Boyolali. The inauguration event will be followed by the launching of Esemka Bima 1.2L and 1.3L, a pick-up car which is predicted to be on sale for Rp110-120 million.

WAWAN PRIYANTO