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THE ASSOCIATION OF INDONESIA AUTOMOTIVE INDUSTRY

GAIKINDO NEWS
NEWS
BIMONTHLY n BULLETIN VOL 02 YEAR 1 - MARCH - APRIL 2016
GAIKINDO NEWS

CHAIRMANS NOTE
dominating the standings sales. And
of course, this appeal is not only ad- GAIKINDO
dressed to our fellows of European
principals, but also from Korea, China, News Board of Organisation 2016-2019
and the USA.
Chairman,
Yohannes Nangoi
The lack the local content and local
components in automotive products Co-chairman I,
causes high car prices. The more prin- Jongkie D Sugiarto
cipals producing in Indonesia, the
more component industry will find Co-chairman II,
it attractive to come and invest here. Erlan Krisnaring Cahyono
The arrival of automobile component
industry to Indonesia will make car Co-chairman III,
prices more easily enter the market. Rizwan Alamsjah

In order to keep up with the prevailing Co-chairman IV,


momentum, GAIKINDO pays a great Bambang Subijanto
Mr. Yohannes Nangoi deal of attention to a number of activi-
Co-chairman V,
ties, particularly the auto show of GIIAS Teddy Irawan
2016 Series. One event of GIIAS 2016
Dear fellows, has been implemented in Makassar Co-chairman VI,
(GIIAS Makassar 2016) on 18-21 May Ary A Mariano
A spark of optimism came ahead of 2016. After that, GAIKINDO is about
the coming second semester of 2016. to enter the second event which also Treasurer,
Indonesia is predicted to gradually be serves as the main the course of GIIAS Anton Kemal Tasli Kumonty
able to replace Thailand as a major au- 2016 Series, namely the GIIAS 2016 at
tomotive production center in South- ICE (BSD) on 11 - 21 August 2016. And
east Asia (ASEAN). According to the eventually the exhibition series will be Address
Ipsos Global Automotive Sector Busi- in closing when GAIKINDO hosts the Jl Teuku Cik Ditiro I No 11 D-E-F,
ness Consulting, the potential was evi- final series of GIIAS 2016 in Surabaya Menteng, Jakarta Pusat 10350
dent from the trend of vehicle produc- on 28 September 2 October 2016.
tion output, policy development, and Phone: +62 21 315 7178
improvement of infrastructure. GIIAS Makassar 2016 has shown better
Fax: +62 21 314 2100
results than that in 2015. We are opti- E-mail: gaikindo@gaikindo.or.id
Indonesia will continue to increase mistic GIIAS 2016 at the ICE and GIIAS Web: www.gaikindo.or.id
production capacity, domestic mar- Surabaya 2016 will also show better
ket, and export volume as well. The performance. Efforts towards that
potential poses major implications for ends have already been garnered by
manufacturers and suppliers of au- GAIKINDO by bolstering better com-
tomotive parts. Despite the fact that munication with a number of stake-
Indonesia possesses installed produc- holders.
tion capacity up to some 2,000,000 Correction of covers title of previous edition.
units of vehicle per year, only about With the Government (Ministry of In-
62% of them is effectively utilised. This dustry), GAIKINDO always strength- THE ASSOCIATION OF INDONESIA AUTOMOTIVE INDUSTRY

condition urges us to improve further ens a mutual cooperation. GAIKINDO GAIKINDO NEWS
investments for the manufacture of also conducted a series of road show NEWS
BIMONTHLY n BULLETIN VOL 01 YEAR 1 - JANUARY - FEBRUARY 2016

new plants or to increase the plants to mass media in order to foster bet-
capacity, given that the utilisation rate ter common ground. And last but
remains the same. not least, GAIKINDO has paid a com-
munity service through CSR activities
This optimism is something that we in the fields of education and health
must maintain and use to encour- for the benefit of school children and
age Indonesia automotive industry community. And we thank the Gov-
to be more active in making new ernment, the media, the community
breakthroughs. For example, to fur- who in return have offered a positive
ther strengthen the cooperation with response to our cause. n Welcome aboard
the principal. This spirit has been
echoed by the Government (Ministry GAIKINDO 2016-2019
of Industry). The Ministry encourages Regards,
principals of automobile manufactur-
ers to keep up with the Japanese car Yohannes Nangoi GIIAS 2016 Designated to Generate Car Market
TC-1 & General Membership & Council Meeting Kuta, Bali Indonesia
manufacturers that have always been

March - April 2016

2
GAIKINDO NEWS

INDICATORS

Car Production Car Sales


in Indonesia Jan-April 2016 in Indonesia Jan-Apr 2016

Sedan : 13,978 units Sedan : 4,854 units

4x2 : 225,675 units 4x2 : 215,334 units

4x4 : 4,926 units 4x4 : 1,893 units

Bus : 2,008 units Bus : 993 units

Pickup : 58,657 units Pickup : 49,182 units

Truck : 23,482 units Truck : 21,620 units

Double Cabin : 0 units Double Cabin : 2,775 units

LCGC : 59,443 units LCGC : 55,260 units

Total : 388,169 units Total : 351,911 units

Length of Road 2014


(by Level of Government Responsibility)
National : 38,570 kilometers
Province : 53,642 kilometers
Car Export from Indonesia Jan-Apr 2016 District/Municipality : 415,848 kilometers
t$#6  VOJUT Length of Roads 2014
t$,%  TFUT (by Surface Type)
t$PNQPOFOUT  QJFDFT Asphalt : 295,968 kilometers
Non-asphalt : 221,695 kilometers
Car Import to Indonesia Jan-Apr 2016 Total : 517,663 kilometers
t VOJUT $#6
Source: Ministry of Public Works and Provincial/Regency Public Works Offices

New Cars in Indonesias Market in 2016 BI Rate 2016 Domestic Economic


1. Audi A4 All-new t+BO Performance Q1 2016
2. BMW 3 Series t'FC t&DPOPNJDHSPXUI
3. Chevrolet New Captiva t.BS (from 4.63% in 2015 Q1)
4. Daihatsu Ayla MPV BI Rate applicable officially t$POUSJCVUJPOUP(SPTT
5. Honda BR-V as the benchmark interest Domestic Product:
6. Land Rover rate since 2005. Java : 58.91%
7. Mazda CX-3 Source: Bank Indonesia. Sumatra : 22.15%
8. Mercedes Benz V Class MPV Kalimantan : 7.67%
9. Mitsubishi All-new Pajero Sport Sources: BPS
10. Mitsubishi New Mirage
11. Suzuki Ertiga Dreza Indonesias Car Population 2014
12. Suzuki Karimum Wagon R 12,599,138 Passenger
13. Toyota Agya MPV 2,398,846 Bus
14. Toyota Fortuner All-new 6,235,136 Commercial
15. Toyota Sienta Source: Traffic Corps Indonesian National Police

March - April 2016

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GAIKINDO NEWS

GIIAS 2016 Knocking on the Door


Green Technology for a Better Future
The official auto show in Indonesia, series of exhibitions by GAIKINDO in the primary missions GAIKINDO is
GAIKINDO Indonesia International Auto 2016. Two other exhibitions are GIIAS to continue better partnership with
Show (GIIAS) 2016, is on the doorstep. 2016 Makassar (South Sulawesi) and the Government to promote the
GIIAS 2016 will take place on 11-21 GIIAS 2016 Surabaya (East Java). Indonesian automotive industry.
August at ICE Building, BSD City,
Jakarta outskirt. Various preparations GAIKINDO also realised that it needs The meeting with Minister of Industry
have been accomplished by the to strengthen communication with took place at the Ministrys office on
host, The Association of Indonesia the Government (Ministry of Industry). 11 May 2016. GAIKINDO delegate
Automotive Industry (GAIKINDO), in GAIKINDO spent a special occasion to consisted of GAIKINDO 1st Chairman
cooperation with the event organiser meet the Minister of Industry Mr Saleh Mr Jongkie D Sugiarto, 2nd Chairman
Seven Events. Husin. This is in accordance with the Mr Rizwan Alamsjah (who is also
statement of GAIKINDO Chairman Chairman of the GIIAS 2016), General
GIIAS 2016 in BSD City is one of the three Mr Yohannes Nangoi that one of Secretary of GAIKINDO Mr Kukuh
Kumara, and Mr Andy Wismarsyah
(chairman of GIIAS 2016 event
organiser). They were received by the
Minister of Industry Mr Saleh Husin
who was accompanied by Director
General of Metal, Machinery, transport
equipment (ILMATE) Mr I Gusti Putu
Suryawirawan.

In essence, during the meeting GAI-


KINDO reported on the preparedness
of GIIAS 2016. Minister of Industry ex-
pressed its support to GAIKINDO in re-
gard with the 24th exhibition that GAI-
KINDO ever holds. This year is more
focused, Im sure will be a success,
said Mr Jongkie D Sugiarto. n

Official support from OICA GIIAS to Foster Growth


of Automotive Industry
GIIAS is the only auto show in Indonesia
that is recognised by GAIKINDO with As a part of three-event exhibitions, GIIAS in 2015 managed to create
endorsement from the Association 21,658 deliveries and booked transaction of IDR 6.3 trillion. GIIAS
of International Automotive Industry in 2015 also contributed to additional sales of cars in Indonesia
(Organisation Internationale des domestic market. GAIKINDO saw domestic car wholesales rise after
Constructeurs dAutomobiles, OICA). The Paris-based organisation falling during the first half of 2015 compared to the same period of
only gives support to its members. GAIKINDO has become member 2014. In the period from August to November 2015 averagely sales
of OICA since 2006. With GAIKINDO joining OICA, GIIAS entered reached 90,000 units per month. Thus, wholesale sales January-
a league of major auto exhibitions such as that in Tokyo (Japan), December 2015 totaled 1,013,291 units thanks to extra sales
Geneva (Switzerland), Los Angeles and Detroit (USA), Frankfurt during the three events of GIIAS 2015.
(Germany), and Beijing (China).
GIIAS been a mainstay for the sole agents (APMs) for launching
In addition to raising the prestige of Indonesia in the international and promoting their latest models. There are at least 10 new cars
arena, the presence of OICA in providing endorsement to GIIAS also are ready for launch in GIIAS 2016. New brands such as Wuling
allows manufacturers to launch new product or concept vehicles reportedly will use the exhibition a momentum to introduce its new
in convenient schedule that will not clash with exhibitions in other multi-purpose vehicle (MPV). Other brands from Japan and Europe
countries. Currently there are 18 accredited international auto will also launched their latest models to Indonesia market during
shows that find endorsement from OICA. n GIIAS 2016. n

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GAIKINDO NEWS

2016

Makassar
BSD City
Surabaya

GIIAS Makassar GIIAS 2016 (BSD City) GIIAS Surabaya


18 22 May 2016 11 - 21 August 2016 28 September 2 October 2016
Four Points by Sheraton Makassar Indonesia Convention Exhibition (ICE) BSD City Grand City Surabaya

1986 2016
2016

GIIAS 2016 is 24th car exhibition by GAIKINDO since 1986


There are five national holidays throughout GIIAS 2016 (including 17 August the Anniversary of Indonesia Independence Day)

GIIAS 2015 Series booked 21,658 units


and transaction of IDR 6.3 trillion

32 brand participants:
26 passenger brands
Admission fee: 6 commercial brands
Monday-Thursday:
IDR 50,000 Motorcycle
Targeted visitors: participants
450,000 people Friday-Sunday:
IDR 70.000 in GIIAS 2015:
BMW, Yamaha,
Honda, Kawasaki,
Targeted Royal Enfield,
transaction: Triumph
IDR
5.7 trillion

Total area: 96,577 square meters

22,000
workers
involved directly
throughout the
exhibition (proving
that GIIAS helps boost
economic growth from
hotel, restaurants, and
transport sectors)
GIIAS is the only exhibition by GAIKINDO. GIIAS is endorsed by OICA, the world automotive body and an exhibition of the world agenda in line with such world-renowned auto show
in Frankfurt, Geneva, Paris, Detroit, Tokyo, Beijing. GAIKINDO Chairman, Mr Yohannes Nangoi

March - April 2016

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GAIKINDO NEWS

GIIAS Makassar 2016


Booking IDR 268 Billion
18-21 May 2016
Committee of GAIKINDO Indonesia The exhibition at place at the Four and the new venue at Four Points
International Auto Show (GIIAS) Points Sheraton Makassar epitomizes by Sheraton, Jalan Landak Baru
Makassar 2016 released a statement potential of automotive market is in No 130 Makassar. The venue with
that the car exhibition turned eastern areas of Indonesia. We are international standards conveniently
successful. It reportedly attracted very proud of the results during the sits in the downtown area of Makassar
22,324 visitors and booked some IDR GIIAS Makassar 2016. and traverses the main axis of the city.
268 billion transaction. Director of Four Points by Sheraton is the perfect
Seven Events (the organiser of the A1R Events director Mr Yusuf Ungsi location for GIIAS Makassar Auto
event) said that 1,086 cars were sold (Seven Events partner) said the new Show in 2016.
during the exhibition. This goes venue helped promote the exhibition
beyond the achievement the previous attract visitors interest. The new GAIKINDO will continue GIIAS 2016
auto shows, he said. venue provides experience and Series on August 11-21 at Indonesia
comfort, both for the participants and Convention Exhibition (ICE) Building,
visitors. BSD City, and followed with GIIAS
Surabaya 2016 on 28 September 2
GIIAS Makassar 2016 took place on October 2016. n
18-22 May 2016 with the concept

Best Awards Go to:


Favourite Car by Visitor (Toyota All New Sienta)
Favourite Carin Test Drive (All New Mitsubishi Pajero Sport)
Favourite Booth Design over 200 square meters (Honda)
Favourite Booth Design under 200 square meters (Mitsubishi Motors)
Booth favorit pengunjung (Mandiri Tunas Finance)

Roads (2013):
Neighbouring Total : 32,432 kilometers
Provinces: Nasional Roads: 1,556 kilometers
West Sulawesi Province Roads: 1,147.51 kilometers
Central Sulawesi District/Municipal Roads : 29,616 kilometers.
Southwest Sulawesi
Toll Roads:
Makassar : 6.05 kilometers
Makassar-Airport: 11.57 kilometers

Participants: 15 APM anggota GAIKINDO


13 passenger cars:
Datsun, Daihatsu, Ford, FIAT, Honda, Jeep,
South Sulawesi Province KIA, Mercedes-Benz, Mitsubishi Motors, Nissan,
Capital : Makassar Renault, Suzuki, Toyota
(the main gateway to eastern areas
of Indonesia, after Surabaya) 2 commercial cars:
Square : 46,717 kilometers Mitsubishi Fuso, Tata Motors
MAKASSAR
Population (2014) : 8,432,200 people
PDRB 2014 : IDR 35.59 million

March - April 2016

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GAIKINDO NEWS

GIIAS Surabaya 2016


28 September 2 October 2016
In addition to Makassar (South Su- to 13 December 2015, visitors showed million in 2015), East Java also has a
lawesi), GIIAS 2016 Series also takes a promising response. The GIIAS Sura- strategic geographical position eco-
place in Surabaya (East Java). Mean- baya 2015s success also came from nomically.
while, the main event of the exhibi- to the support of local governments,
tion (GIIAS 2016) is held in the ICE. The both from Surabaya Municipality and East Java neighbors with three prov-
GIIAS 2016 is about to take place at the East Java Province. inces that have economic potential,
Grand City Convention and Exhibition, namely Bali, Central Java, and Yogya-
from 28 September to 2 October 2016. Like Makassar, Surabaya is one of the karta from which visitors of GIIAS
provinces that GAIKINDO perceives Surabaya 2016 are expected to come.
This year Surabaya for the second to have huge potential for automo- Surabaya, with the airport and the
time is chosen to host a car show as a tive industry development. East Java harbour facilities of international cali-
part of the GIIAS 2016 Series. Last year, is also a contributor to domestic car ber, also plays a crucial role in the so-
GIIAS Surabaya 2015 turned success- market over the years (16%). Besides cio-economic veins of the country. n
ful. Throughout the exhibition from 9 supported with a population (38.85

GIIAS Surabaya 2015 East Java Province


Total Visitors : 30,298 people Square : 47,800 kilometers
Expected visitors : 20,000 people Capital : Surabaya
Deliveries : 1,193 units Population 2015 : 38,847,561 people
Transaction : IDR 323 billion Gross Regional Domestic Product 2014:
Participants (15 brands): Daihatsu, Datsun, Fuso, Honda, Hyundai, Isuzu, IDR 39.9 million
Lexus, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Renault, Suzuki, Tata, Toyota.

Car Population 2014


Passenger Cars : 910,132 units
Commercial Cars : 408,894 units
Buses : 30.490 units
Special Purpose Vehicles : 10,523 units. Toll Roads:
Source: Traffic Directorate, East Java Police Department
Gempol-Pandaan : 13.61 kilometer
Solo-Ngawi : 90 kilometers
Waru-Juanda : 12.8 kilomers
Province Road Length 2014 Kertosono-Mojokerto : 14.7 kilometers
(1,760,912 kilometers) Surabaya-Mojokerto : 2.3 kilometers
Good : 983,522 kilometers
Moderate : 588,420 kilometers
Broken : 178,470 kilometers Neighbouring
Severely broken : 10,500 kilometers Provinces:
Source: Bina Marga, Public Works, East Java
Central Java
Yogyakarta
Bali

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GAIKINDO NEWS

Domestic Sedan Production for Developing Markets


Production of sedan has become the in Indonesia. And it continues today, the government should help facilitate
choice for Indonesias automotive where Indonesia has become fertile the production and sedan market in
industry in its rally to ma a ground for MPV production and the country.
breakthrough of its market. GAIKINDO market. MPV production and exports
sees that domestic sedan production from Indonesia are mainly practiced Beberapa cara yang bisa ditempuh
can be the key of opportunity for by Toyota-Daihatsu, Isuzu, Suzuki, and antara lain memangkas pajak sedan
Indonesia car industry to grow. Hyundai. dari 30% menjadi 10%, memangkas
bea impor bahan baku. Langkah
The opportunity comes form the In order to make successful export, tersebut sudah GAIKINDO lakukan
open abroad market: export. That sedan makers should follow MPVs sejak Oktober 2015, dan masih
means, GAIKINDO will use export path, by doing two importantly terus melakukan negosiasi dengan
as enhancement platform of the basic things first: to strengthen the pemeringah untuk mendapatkan
national automotive industry amidst production base in Indonesia and kesepahaman. n
the clogged domestic market. to secure their domestic market.
To strengthen production and There are points where the
Car export from Indonesia so far market in Indonesia, sedan should government can start, including to
mostly relies on MPV models. MPV be competitive. For that reason, cut taxes for sedan from 30% to 10%.
has been massively manufactured GAIKINDO needs to make closer Other incentives in the form of
in Indonesia, thanks to Indonesian cooperation with the government. tax holidays is under way for both
governments early choice on MPV GAIKINDO since October 2015, for parties between the government and
as a platform base of car production instance, has been suggesting that GAIKINDO to deal with. n

n Regulation GAIKINDO urges the Government to revise:


The Government Regulation Number 41/2013

n Why industry needs to push domestic sedan production:


l Domestic market seems reluctant (1,013, 291 units in 2015, down
Domestic Sedan sales
from 1,2 million units in 2014) (with tax 30%) 2015:
l Idle capacity (only 50% effective, with total capacity 1.9 million 17,422 units
units/year)
l Economic growth is centered in Java (60%). Other islands
need developing to create new market and to control vehicle
population in Java Domestic MPV (4x2) sales
l To create more work forces. Nowadays automotive sector gives (with tax 10%) 2015:
jobs to 1.3 people 549,684 units
l Automotive sector contributes IDR 70 trillion from taxes to
Central Government
l Automotive sector provides routine IDR 31 trillion from local tax
incomes to local governments.

Domestic Car Sales & Production 2015 2,000


2,000 Thailand Lessons
(Strong Manufacture)
Production component industries
1,913,002
Note:
1,098,780 1,500
Thailand
Note: Indonesia
Domestic Market Thailand
799,632 Indonesia 1,000
1,013, 291
600
Exports
500
1,100,000
207,691
0 500,000 1,000,000 1,500,000 2,000,000 0

March - April 2016

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GAIKINDO NEWS

MARKET

It only Takes 2 Years for


LCGC to Pursue MPV
LCGC sales in Indonesia shows Some brands that follow the LCGC LCGC history
phenomenon. Since the government programmes include Daihatsu, LCGC programme was launched on
passed a regulation on LCGC Datsun, Honda, Suzuki, and Toyota. legal basis of Government Regulation
production and sales in 2013, the LCGCs promising performance No. 41 in 2013 on Taxable Luxury
model creates a fertile domestic continues in 2016. In the first four Goods Category of Motor Vehicles
market. LCGCs total sales are only months, sales figures of LCGC increase. Subject to Sales Tax on Luxury Goods.
outdone by the MPV model which After successfully strengthening the This regulation was signed by the
has been dominating Indonesian production and market platform in Minister of Industry Mr MS Hidayat
domestic car market market. the domestic market, LCGC begins to on 1 July 2013. The authorisation was
penetrate the export market to the conducted by the Ministry of Justice
Philippines, Malaysia, and Pakistan. and Human Rights on July 5, 2013.
LCGC Domestic Sales Jan-Apr 2016
Entering the third year since the In general, the LCGC programme aims
15,000 launch of LCGC programme, some to save energy consumption and
manufacturers make preparations utilisation of alternative energy. This
14,625
to rejuvenate the model. Renewal is rule says that government provides
made not just about features, but also exemption of luxury goods sales tax
the loading capacity. For instance, it (sales tax) to producers of LCGC.n
14,000 13,959
is likely to transform from 5-seater
hatchback to 7-seater.
13,535

Total domestic sales Jan-Apr 2015:


13,141
13,000 Truck:
21,620 units

0 LCGC:
Jan Feb Mar Apr
55,260 units
LCGC has created
new 80 component
LCGC attracted investment industries.
USD 6.5 billion:
Component industry : USD 3.5 billion LCGC Producers:
Assembly plants : USD 3 billion Daihatsu (Ayla) MPV (4x2)
Datsun (Go+ Panca) 215,334 units
LCGC has created direct Honda (Brio Satya)
30,000 work forces in Suzuki (Wagon-R)
manufacture sector, and 60,000 Toyota (Agya)
work forces in distribution sector

March - April 2016

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GAIKINDO NEWS

INFORMATION IN BRIEF
BMW X1 Assembled in Indonesia Rolling out and 30,000 units of SUV All New Pajero Sports. The first
mass production of the All-new Pajero Sports will reach
BMW Indonesia launched the second generation of all- 30,000 units per year. Thus, from April 2017 KTB will
new BMW X1 Sports Activity Vehicle (SAV) compact in stop exporting the All New Pajero Sports from Thailand,
Indonesia. The All-new BMW X1 is assembled in Indonesia replacing with those manufactured in the new plant. The
through a joint partnership with Gaya Motor. It comprises plant will optimize its annual production capacity up to
two variants, sDrive18i (priced at IDR 619 million) and 240,000 units. n
sDrive18i Xline (IDR 659 million). BMW invested a new
capital of 3.5 million (IDR 62.65 billion) to develop and Mercedes-Benz Latest SUV Produced in Bogor
improve the car assembly plant in Sunter (North Jakarta).
BMW Group Indonesia is targeting growth of car assembly Mercedes-Benz started assembling of its sport utility
by 17.35% to 2,400 units. With the additional capital, vehicle (SUV) series GLC with 2.1 litres 4-cylinder
the total investment of BMW in Indonesia rose to 11.5 engine at a factory in Wanaherang, Bogor (West Java).
million (IDR 212.65 billion). BMW started investing 8 The GLC assembly proves competency of the plant in
million in Indonesia in 2011. n manufacturing a world-class product, said President of
Mercedes-Benz Indonesia Mr Guenter Haefele in May
Daihatsu Clay Modeling Workshop for Lecturers 2016. The GLC into products passenger car assembled in
sixth Mercy Indonesia. Mercedes-Benz five other models
PT Astra Daihatsu Motor (ADM) addresses the industrial have been manufactured in Wanaherang plant, namely
product design by organising a clay modeling the sedan C-Class, E-Class, S-Class; M-Class SUV which
workshop for lecturers of various universities for 10 was retired; GLE and SUV models. The whole products are
weeks at the National Institute of Technology (ITENAS) completely knocked-down due to the components are
Bandung (West Java). Entitled 360 degree of Model still imported from Germany. GLC series was introduced in
Making in Automotive Industry, the workshop was the GIIAS 2015. n
opened by the Rector of ITENAS Mr Imam Aschuri in
early June and took place every Saturday during 10 Toyota Developing Engineering Education Center
meetings. The opening was attended by Chairman
of the Indonesian Association of Industrial Product Toyota Motor Manufacturing Indonesia (TMMIN) invested
Designers Mr Adhi Nugraha, Executive Officer of IDR 23 billion to establish a centre for engine education
Research and Development ADM Mr Pradipto Sugondo, named TMMIN Learning Center (TLC) in its engine
and Executive Officer of Research and Development production area in Karawang (West Java). The third TLC is
(R&D) ADM Mr Yosuke Sakaguchi. n equipped with modern machine lab tools, reliable human
resource, and certified trainers. President Director of PT
Hino Switching to Bus Sales TMMIN Mr Masahiro Nonami in March said the TLC is also
be used as a training ground for local suppliers and an
PT Hino Motors Sales Indonesia will boost bus sales. educational institution. The new TLC serves as centre for
President Director of PT Hino Motors Sales Indonesia Mr of human resource development responsible to improve
Hiroo Kayanoki on March said commercial vehicle market the quality products globally. n
is declining. Sales of truck in mining sector dropped
precipitously due to the sluggish mining industry in UI Students Cars Winning in Manila Contest
Indonesia. In January Hino saw sales in Indonesia fell
23%. Demands for bus characteristically rises during Eid Students of the University of Indonesia (UI) won a
and the end of the year. Hinos bus sales are currently competition of fuel-efficient cars in Shell Eco Marathon
contributing to 8% of total domestic bus sales. Small (SEM) Asia in March in Manila (the Philippines). Two cars
buses are favourite among customers as they can deliver assembled by UI students managed to become the best
passengers more quickly and efficiently. n in urban concept gasoline car category and gasoline
prototype car category. A car nicknamed Kalabia Evo 5
10% to Completion of Mitsubishis New Plant managed to break the Asian record with the achievement
of one liter of petrol for 275 kilometers. Another car (Keris
Mitsubishis new plant in Greenland International RVII) reached mileage 792 kilometers per liter. SEM Asia
Industrial Center, Deltamas, Bekasi (West Java) is 10% 2016 was attended by 117 teams from 17 countries in
nearly completed. The plant was built with a joint venture Asia, the Middle East, and Australia. Representatives from
between KTB and its Japan Principal Mitsubishi Motors Indonesia consisted of delegates from the University
Co, under the name of PT Mitsubishi Krama Yudha Motors of Brawijaya (Malang, East Java), Surabaya Institute of
Indonesia (MMKI). The plant has production capacity of Technology (Surabaya, East Java), University of 11 Maret
160,000 units per year. It is designated to produce 80,000 (Solo, Central Java), Bandung Institute of Technology
units of small MPV, 30,000 units of commercial cars L300, (Bandung, West Java), and UI. n

March - April 2016

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GAIKINDO NEWS

WORLD NEWS
Nissan Acquiring 34% Mitsubishis Shares batteries will need to be replaced after around 150,000
kilometers. n
Nissan Motor Company purchased 34% stake in
Mitsubishi Motors Corporation (MMC) worth 237 trillion Thailand-manufactured Cars Swarming Neighbour
yen. The share buyback while extending the cooperation
between Nissan and Mitsubishi during the last 5 years. Thailand car exports to Vietnam rose 30% due to import
Chief Executive and President of Nissan Carlos Ghosn said agreement among fellow ASEAN members. Thailand
in May 2016 with the new contract, Nissan will buy 506.6, outperformed exports from Indonesia, China, and South
million MMC shares at a price of 468.52 yen per share, Korea. Thai exports to Vietnam in the first quarter of 2016
making Nissan the largest shareholder in Mitsubishi. reached above 7,800 units, up by 64.5% over the same
MMC and Nissan hope that Mitsubishi Heavy Industries, period in the previous year. These records have to do
Mitsubishi Corporation, and The Bank of Tokyo-Mitsubishi with the preferential import tax treaties that apply to all
UFJ will fix collective ownership in Mitsubishi Motors and member countries of ASEAN. Under the agreement, tax
support the strategic alliance. n of imported vehicles is falling from 50% to 40% in 2016,
then going down again to 30% in 2017 and 0% in 2018.
Expansion of the Russian Automotive to ASEAN According to Vietnam Customs, imported cars reached
19,700 units in the first quarter of 2016 (USD 486 million),
Russia is developing new car manufactures in Vietnam down 16.8% compared to last year. The decline occurred
as an entrance to ASEAN market. Russia and Vietnam in almost all types of vehicles, except trucks which rose
agreed on April to manufacture several brands in 16%. n
Vietnam including Gaz, Kamaz, and Sollers that will
get a number of features in terms of the import quota and European Cara Eyeing Myanmar Market
duty-free. This year 800 units vehicles will be imported
to Vietnam from Russia through duty free mechanism. Myanmar car market begins to be at the glance of
The plants in Vietnam will produce buses, trucks, special worlds car makers. Volkswagen and Citroen are just
vehicles, light commercial vehicles, and passenger cars. entering Myanmar through cooperation with local
In the first phase, 2,550 units of vehicles will be imported manufacturers to catch up with Asian manufacturers that
during the next three years, and 13,500 car components have been previously operated. Axel Oberdiek, Head of
within five years. Localisation of production will reach VW Southeast Asian Operation said VW is opening the
50% in 2025. This agreement is the first joint project of the first showroom in Yangon, Myanmars largest city. They
free trade zone among Eurasian Economic Union (EEU) will sell a variety of models, with first-year sales target of
members led by Russia. n 150-200 units. Earlier, Nissan arrived to assemble cars in
Myanmar this year. This expansion is made to increase
India, Norway, Netherlands Want 100% consumer niche Southeast Asia are predicted to reach
Electric Vehicles 50 million potential buyers. Citroen (France) is entering
Myanmar through cooperation with local dealers Seven
Indias Road Minister says the country will have 100 Stars Motors Industry which has the largest network of car
percent electric vehicles by 2030 to follow Norway and sales. Seven Star with 10 showrooms in seven cities
Netherlands. Norway began looking into requiring all also cooperate with Kia Motors and Hyundai Motor since
new cars to be fully electric starting in 2025. And before 2012. n
long, the lower house of Dutch Parliament supported a
motion last month to ban sales of new petrol and diesel Tesla Expecting Half Million Electric Car Production
cars starting in 2025. Like the Norwegian plant, the Dutch
proposal is not yet law and it still faces some opposition Tesla Motors will accelerate mass production of sedan
domestically (report in Dutch). Significantly, the People Model 3 based entirely on electric technology. They target
Party (VVD) the largest in the country and head of the in 2018 there will be at least 500,000 electric sedans to
current governing coalition finds the idea unrealistic. produce. This production plan is two years ahead of Teslas
But other parties point out that the Dutch Energy Act original plan. Tesla Chief Executive Elon Musk said capital
expires in 2023, so a ban on diesel and gasoline vehicles expenditure will increase by 50% (USD 2.25 billion) more
afterwards would not require that Act to be revised. than the previous year. This year, Tesla is also targeting
With oil prices now down considerably, however, it is to produce 80,000 to 90,000 units of electric cars. The
questionable whether the savings will be enough to pay carmaker not only has advantages in technology and
for the batteries alone, which need to be replaced. Tesla design, but is also strong in manufacturing. In 2020 Tesla
apparently offers and eight-year battery warranty with is predicted to reach up to one million units of cars to
unlimited miles, but generally it is assumed that such produce. n

March - April 2016

11
GAIKINDO NEWS

GIIAS 2016 Educare for Pupils and Community

GAIKINDO Indonesia International Auto


Show 2016 (GIIAS 2016) continues its
commitment to contributing support
to the education of the younger
generation of Indonesia through a
series of social program named GIIAS
Educare. This year, the GIIAS Educare
launched a series of programmes for
community service to two primary activities in which students can learn were blended in a theme called
schools one in Tangerang (Banten), by means of adequate and proper Teaching and Giving. We also will
one in Bogor (West Java). facilities of the school, said Mr be bringing the pupils to be present
Kukuh Kumara, General Secretary of and witness the splendour of GIIAS
GIIAS Educare is one of a series of GAIKINDO. Exhibition 2016, said Mr Andy.
events organised by GAIKINDO in
order to welcome GIIAS 2016. GIIAS To achieve good learning activities for In addition to the Teaching & Giving,
Educare is a CSR programmes to students, GIIAS Educare prepares a GIIAS Educare also organised free
provide support for the education number of tools that can help teaching medical consultations for students
of pupils of primary schools. The and learning activities such as and the surrounding community.
programmed were delivered through sports equipmentz, stationery, bags, We hope GIIAS Educare mission and
a partnership between GAIKINDO, supplies of worship, as well as tables our support is useful for pupils and
Seven Events (GIIAS event organiser), and benches for pupils and teachers. the community around the school.
dentists, doctors, and Komunitas GIIAS Educare and donations are Hopefully the students can learn well
1.000 Guru (Community of 1,000 aimed at providing benefits to the and are motivated directly derive their
Teachers). The latter is a non-profit educational activities of students and ideals even higher, said Mr Andy.
community that helps disadvantaged teachers and to realise their hope to
children in rural parts of the country. have a school with better facilities, he He expressed gratitude for the
said. support by some APMs of participants
Through this social programme, of GIIAS 2016. Daihatsu, Nissan, and
we visit the schools that still need Mr Andy Wismarsyah, President of Renault which supported transport
support to achieve better educational Seven Events, said the programmes for a full day, he said. n

GIIAS Educare is a CSR programme to provide support for the education of pupils of primary schools.
Theme : Teaching and Giving GIIAS Educare in Tangerang GIIAS Educare in Bogor
Date : 29 April 2016 Date : May 2016
Partner : Komunitas 1.000 Guru
School : Mathalul Anwar School : Miftahul Ulum
(Community of 1,000 Teachers)
Islamic Primary School Islamic Primary School
Pupils : 168 Pupils : 138
Location : Kemiri Village Location : Kampung Gombong,
(Karang Anyar, (Cibadak Villlage,
Tangerang, Banten) Nanggung, Bogor, West Java)

March - April 2016

12

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