Minister Airlangga Hartarto, who oversees the economic domain, has highlighted the crucial role that the automotive industry plays in propelling Indonesia’s economic trajectory forward. These sentiments were eloquently conveyed during the ceremonial inauguration of The 30th Gaikindo Indonesia International Auto Show (GIIAS) in Tangerang, Banten, on Thursday, the 10th of August, 2023.
With an unwavering conviction, he underlined that the robust economic growth achieved in the second quarter of 2023 was profoundly indebted to the robustness of the manufacturing sector.
It showcased a remarkable expansion of 4.88 percent on a year-on-year basis. This automotive industry sector, with its commendable performance, significantly contributed to the nation’s Gross Domestic Product (GDP), contributing a substantial 18.25 percent share.
Simultaneously, the Transport Equipment Industry, a pivotal cornerstone of the economic landscape, emerged as a beacon of steady growth. This commendable trend extended over nine consecutive quarters, spanning from the second quarter of 2021 to the second quarter of 2023.
The data for the second quarter of 2023 paints a striking picture, revealing a commendable growth of 9.66 percent within the transport equipment industry. This notable expansion translated into a substantial 1.42 percent contribution to the national GDP.
In candid words, Airlangga emphasized, “The fundamental strength behind this remarkable growth is the automotive industry itself.”
Diving even deeper into the discourse, Minister Airlangga further illuminated the transformative shift that Indonesia has achieved on the global competitiveness front.
Drawing from the latest assessment by the Institute for Management Development (IMD), he revealed that Indonesia’s competitive standing catapulted by ten positions, ascending from the 44th to the 34th rank. This compelling upward trajectory owes much of its momentum to the nation’s economic performance, which has been galvanized by pivotal initiatives such as the Omnibus Law on Job Creation. The legislative reforms therein, especially those pertaining to labor, have undoubtedly played a significant role.
Drawing insights from the dataset meticulously curated by the Central Statistics Agency (BPS), Indonesia’s economic expansion for the second quarter of 2023 manifested as an impressive crescendo of 5.17 percent (year-on-year).
This captivating statistic underscores the nation’s sustained commitment to maintaining an upward trajectory, consistently hovering above the 5 percent growth benchmark for an impressive span of seven consecutive quarters.
Against the backdrop of July 2023, Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) continued its resolute surge, embarking on its twenty-third consecutive month of expansion.
With a steadfast reading of 53.3, this metric illuminates the unyielding optimism held by stalwarts in the manufacturing sphere. This collective resilience remains unshaken even amid the prevailing global uncertainties and the concurrent softening of international markets.
The broad spectrum of the Indonesian economy, encompassing various sectors, witnessed a notable surge in GDP growth, notably powered by the dynamic trade sector. Within this domain, the trade of automobiles and motorcycles emerged as robust contributors, displaying a commendable growth of 6.56 percent. This burgeoning trend can be traced back to the sustained enthusiasm for vehicle purchases across the populace.
On an intriguing tangent, the insights offered by Gaikindo’s data repository unveiled a compelling narrative of automobile production in the second quarter of 2023. Herein, a striking year-on-year ascent of 4.48 percent was recorded, harmoniously resonating with a distinct 9.64 percent elevation in wholesale passenger car sales.