Recently I traveled overland from Dubai to Abu Dhabi, the two major cities in United Arab Emirates. The trip was using ToyotaLand Cruiser, a car that pretty much used in the oil-rich country.
That impressed me during the trip, the number of Toyota Kijang Innova overtaking or passing of our vehicles. At the time I asked the driver of our car nationals of Pakistan, he said Toyota Innova (Kijang Innova is not) is a popular vehicle in the country. Imagine, in a country that brings a lot of luxury cars of the world, it is precisely the Toyota Innova car that is very popular there.
It turned out that what is produced in Indonesia, although the Japanese company, able to penetrate the market with huge potential abroad. In fact not only that, on the streets of Dubai, the many Daihatsu Terrios speeding. Again we know, is Terrios Daihatsu cars Daihatsu Astra Motor plant in Sunter, Jakarta. This means that more cars made in Indonesia are able to penetrate the world market.
What does all this mean for us? Apparently many Japanese automotive companies operating in Indonesia quietly has put Indonesia as their production base for automobile industry in overseas markets. We know, production of the Japanese automotive industry is generally in the form of commercial vehicles like the Toyota Avanza, Suzuki APV, and the Nissan Livina.
For Japanese companies, building commercial car production base in Indonesia certainly is an attractive option. Why is that? This is not caused by the size of the commercial vehicle market in this country. The vast majority of vehicles sold in Indonesia are commercial vehicles.
This is probably related to family background Indonesia is quite large number of its members. If the sedan is purchased, the car will not be sufficient to accommodate the entire family.
Indonesia is also a huge market and growing. In 2005, car sales in Indonesia reached around 540,000 units. This amount was later dropped drastically because of rising fuel prices at the end of the year. However, the sale and then crept up again.
Encourage the production
In 2008, sales for the first four months rose continuously, ie from more than 41,000 units in January, rising to 47,000 in February. In March sales reached 48,000 units, while in April the figure was 51 000 units have been exceeded.
With such a market, the automotive industry is able to achieve economies of scale that allow them to also increase its production efficiency for the benefit of export markets. As a result, Indonesia became the basis of production for overseas markets.
How much car exports? In 2007, car exports has reached around 230,000 units. This year seems to increase significantly. Unfortunately, I do not have data on the number of units exported. Central Bureau of Statistics data indicate exports of vehicles and parts (HS 87) of U.S. $ 745.3 million during January to March 2008. This figure jumped considerably higher than the same period in 2007 exports reached U.S. $ 497.2 million, up nearly 50%.
The development of the automotive industry so important to the people of Indonesia. So many Indonesian engineers involved in the development industry. So many other experts who are closely linked into the industry. This means awakening community of experts engaged in the automotive industry.
In addition to cars, Indonesia also has the motorcycle industry is very strong. Based on experience during the quarter I/2008, this year's motorcycle industry even Indonesia is able to produce and sell up to six million units. As with the automobile industry, in the motorcycle industry was also awakened community of experts.
It is therefore not surprising that for the construction of new factories of Honda motorcycles in Cibitung two years ago, motorcycle factory design made Indonesian engineers prepared designs capable of defeating Japan. In the end it gives a pride for the engineers Indonesia that they turned out to have a world-class capabilities.
Local content
For the automobile industry, local content around 65% today. When combined with components from Asean countries, Asean its content reaches 70%. For motorcycles, it turns out its local content was close to 100%. This all means that the ability of Indonesia component industry is also not less than the manufacturer of the world.
In the end, conclusions can be drawn is that the more mature engineering capabilities of Indonesian experts. It has also similarities with experts who worked at Unilever where the number ekspatriatnya in Indonesia can be calculated with the left hand fingers while local experts to the top-level managers abroad has reached more than 40 people.
This means that Indonesia's human resources capabilities not inferior to any other country experts.
By looking at these developments, the assumption taken by Pricewaterhouse Coopers Indonesia that the ability of human capital is sufficient to bring this nation as an economic power in the world was not making it up.
Ability is what ultimately make Indonesia more attractive for the industry to spread its wings overseas. This ability also causes a lot of oil companies in the Gulf region are scrambling to get experts from Indonesia.
ok, so first otoMan friend,, hopefully this story can motivate all of us, so that our beloved country may be more advanced prosperous jaya n,, ahha amen,, (otoMan)
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