TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo said that the national automotive industry has started to recover, which is evident from the increase in purchase orders for motorized vehicle products by 190 percent. Manufacturers, Jokowi added, were even overwhelmed by the drastic increase.
"I received the report from the Industry Minister that there is a 190-percent increase in the purchase order. It means we have to pay the down payment in advance. This shows that producers receive a lot of orders, meaning that the automotive industry is recovering," said the President at the opening of the 2021 Hybrid Indonesia International Motor Show (IIMS) at the State Palace, Jakarta, Thursday, April 15, 2021.
President Jokowi said that the increase was attributable to various stimuli provided by the government, particularly the relaxation policy on sales tax on luxury goods (PPnBM).
"The tax relaxation policy has also been implemented to boost purchasing power and automotive sales so as to drive our automotive industry," the President remarked.
According to President Jokowi, the automotive industry has become one of the priority industrial sectors to be accelerated, especially during the current economic recovery period, given that the supply chain involves many industrial sub-sectors, including micro, small, and medium scale industries.
The automotive industry could also provide an economic multiplier effect as it opens large employment. Jokowi hoped that it could immediately boost exports to support state revenue.