economy

The Minister Of Industry Praises PT MMKI For Meeting The Local Content Requirements

The Deputy Minister of Industry, Faisol Riza, praised PT Mitsubishi Motors Krama Yudha (MMKI) for its commitment to complying with the Domestic Component Level (TKDN) regulations. Meeting TKDN is seen as a way to boost the growth of the domestic component industry, providing opportunities for small and medium enterprises (IKM) within the supply chain.

"Achieving TKDN not only supports the independence of the automotive industry but also encourages the growth of other industries, including IKM," said the Deputy Minister during the celebration of PT MMKI's production of 1 million units in Cikarang, West Java, on Friday (December 20).

He noted that PT MMKI is currently one of the largest motor vehicle manufacturers in Indonesia. The production of 1 million units reflects the Japanese company's commitment to innovation, efficiency, and productivity.

"This shows the significant contribution to the automotive industry and the national economy, especially with the ongoing increase in TKDN compliance," added Faisol.

Overall, the national automotive industry has seen growth. In 2023, the four-wheeled vehicle industry produced a total of 1.39 million units, with domestic sales exceeding 1 million units and CBU exports reaching 500,000 units, a 6.7 percent increase from 2022.

From January to November 2024, the national four-wheeled vehicle industry produced a total of 1.09 million units, with 784,000 units sold wholesale, 428,000 CBU exports, and 42,000 CKD units. The total component sales during this period amounted to 143 million units.

"PT MMKI has shown a strong commitment to supporting the national industry, with an investment of Rp12.3 trillion and creating over 3,600 jobs," said the Deputy Minister.

Mitsubishi Motors President and CEO Takao Kato stated that with support from the Indonesian government, suppliers, and partner companies, Mitsubishi's production center in Indonesia has become a key pillar of the business. "Vehicles produced here are sold throughout Indonesia, and some are exported to other countries, including ASEAN nations, making this facility crucial as a main production site in ASEAN. We will continue to launch exciting products and contribute to Indonesia's economic development," he explained.

The production center, located in the GIIC Industrial Area in Bekasi, West Java, is a joint manufacturing venture established by Mitsubishi Motors, Mitsubishi Corporation, and local partner PT Krama Yudha. The factory began operations in April 2017 with an annual production capacity of 160,000 vehicles. In the fiscal year 2019, this capacity was increased to 220,000 vehicles, and the company has since exported vehicles to around 50 countries.

"This achievement reflects the strong acceptance of MMKI products in both domestic and export markets. MMKI is committed to providing high-quality and reliable vehicles to meet customer expectations and demands while enhancing production facility utilization. Additionally, we will continue to expand the number of export destinations," said Minoru Saito, President Director of MMKI.

Tag: Deputy Minister Of Industry Faisol Riza Mitsubishi Motors Krama Yudha