automotive

Showcasing Innovation, Transport Equipment SMEs Ready To Compete In The Electric Vehicle Era

The growth of the electric vehicle (EV) market is not just about helping the environment; it’s also a boost for the economy and a way to advance the local industry ecosystem. There have been some cool innovations from local players in the electric vehicle sector.

The Ministry of Industry, through the Directorate General of Small, Medium, and Miscellaneous Industries (Ditjen IKMA), is actively working to strengthen the competitiveness of small and medium enterprises (SMEs), especially in the electric vehicle transport sector.

“The government is continuously working to support and promote local electric vehicle products so they can compete in both local and global markets,” said Reni Yanita, the Director General of IKMA, in a statement in Jakarta on Friday (October 25).

One of the initiatives by Ditjen IKMA is backing the Electric Vehicle Exhibition and Promotion event happening from October 23-25, 2024, at SMK IPT Karangpanas in Semarang. This event is a collaboration between Ditjen IKMA, the Semarang City Government, PT. Mitrametal Perkasa (AZN Motor), and SMK IPT Karangpanas, showcasing various innovations in the electric vehicle sector.

Reni noted that the increasing number of electric vehicles reflects a growing interest among people in using them, which could lead to a positive outlook for electric vehicle sales.

“According to data from the Indonesian Motorcycle Industry Association (AISI), electric motorcycle sales in Indonesia saw a significant jump in 2023, reaching 54,737 units, a 218 percent increase from the previous year’s 17,198 units,” she mentioned.

The Indonesian Automotive Industry Association (GAIKINDO) reported that wholesale sales of electric cars from January to August 2024 hit 23,045 units, marking a 177.32% increase compared to the same period in 2023, which saw 8,310 units sold. Reni noted, "These figures reflect a rapid growth in the adoption of electric vehicles in Indonesia."

This trend aligns with the government's efforts to achieve net zero emissions by 2060. The government is actively working to enhance the electric vehicle ecosystem through various incentive policies and the development of charging infrastructure.

Reni added that the hope is for electric vehicle adoption to become even more widespread, contributing to sustainable development in Indonesia. She also mentioned that the Directorate General of Small and Medium Industries (Ditjen IKMA) is actively supporting the role of small industries in the electric vehicle ecosystem.

"From our experience in mentoring transportation SMEs, these businesses can become part of the tier 2 and tier 3 supply chain in the national automotive industry, meaning they can meet the quality standards set by larger industries," Reni explained.

In 2022, Ditjen IKMA provided technical assistance to transportation SMEs in Bali and NTB for the development of electric bicycles. "Additionally, Ditjen IKMA supported the development of the 'Bralink EV1' electric motorcycle in Purbalingga by enhancing the welding skills of transportation SMEs and facilitating machinery and equipment," Reni shared.

Tag: AZN Motor Electric Vehicle Era IKMA