The Indonesian transportation ministry has decided to invest 1.64 trillion rupiahs (US$116.5 million) in the construction of a motor vehicle ‘proving ground’ test track within the next four years to strengthen Indonesian automobile manufacturers in the South East Asian market.
Aspects of the Project
The project for the 19-hectare proving ground and test track is scheduled to commence in 2022 in Bekasi, a satellite city of Jakarta. According to the statements of transport minister Budi Karya Sumadi, there is a target to finish building the track in 2024.
The proving ground will be the venue for testing Indonesian cars, buses, trucks, motorcycles, and three-wheelers. It will follow the international benchmark UN regulation on vehicles (UNR) to be “more compliant with other markets’ standards, particularly within the ASEAN region,” quoting Sumadi.
According to the land transportation director general, Buti Setiyadi, the new testing ground would be adding 19 new testing facilities to the ministry’s current vehicle testing site (BPLJSKB) in Bekasi. These novel facilities will be taking into account, among other factors, vehicle emissions, noise levels, crash safety, and mirror view. The entire venture would abide by the UNR, universally recognized by South East Asian countries through the ASEAN Mutual Recognition Arrangements (MRA).
Boosting Export
During a Jakpost Spotlight webinar “Improving Vehicle Safety in Indonesia through Proving Ground” on December 10, minister Sumadi said, “Indonesia produces a lot of cars, we use a lot of cars but we don’t export as much.”
Indonesian automobile companies exported 180,903 completely built-up (CBU) vehicles this year, which makes for a third of the total vehicle production. This information has been taken from data of the Association of Indonesian Automotive Manufacturers (Gaikindo). Gaikindo is hoping to raise exports to one million units and domestic sales up to two million units by 2025.
The Indonesian trade surplus has also been benefitted by increased vehicular exports. It hit $17.07 billion in January to October this year as per the report of Statistics Indonesia. It aids the rupiah exchange rate and accelerates the country’s economic recovery.
Regional Race
Following Thailand, Vietnam has also entered the battle of the South Asian competitive auto market with Indonesia. Recently Vietnamese automaker VinFast got a proving ground in Australia, signaling to Gaikindo the possibility of tough regional competition. Sumadi claimed that “there are other proving grounds in ASEAN but ours will be the biggest.”
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