​​Indonesia is again trusted to become a vehicle production base with global brands. Piaggio, with the worldwide brand Vespa chose Indonesia to be the place to manufacture motorcycle models, which will also be sent to various countries.

The presence of Piaggio with his Vespa represents what the Indonesian government has planned in the Making Indonesia 4.0 roadmap. The Ministry of Industry continues to spur the development of the automotive sector, including the motorcycle industry, especially since Indonesia is the largest motorcycle market share in ASEAN with sales in 2020 of 3.66 million units and a market share of 38 percent.

"Motorcycles are one of the most important modes of transportation for the people of Indonesia, so the potential for the automotive industry to fill the motor vehicle market is still very large," said Industry Minister Agus Gumiwang Kartasasmita at the Groundbreaking event for the Construction of Production Facilities of PT Piaggio Indonesia in Cikarang, last Tuesday (9/11/2021).

 

 

 

 

 

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According to Agus, the expansion was carried out by PT Piaggio Indonesia is a giant leap from the company that holds the iconic Italian motorcycle brand. In addition, this effort also makes a positive contribution to the development of the national automotive industry, especially in terms of increasing investment, employment, and empowering the local component industry.

“Keep in mind, this is an early stage, meaning that in the future, there will be more activities, participation, and investments from Italian friends, especially PT Piaggio Indonesia," said Agus.

The Ministry of Industry appreciates the construction of the production facilities of PT Piaggio Indonesia covers an area of ​​55 thousand square meters with a capacity of 10,000 units per year, whose first production will begin in the fourth quarter of 2022. It is hoped that this new facility can strengthen Piaggio's brand image in Indonesia and create added value for the domestic industry, which can accelerate recovery. The national automotive sector is amid the Covid-19 pandemic. The motorcycles assembled at this facility will be available at the end of 2022.

"The growing middle-class growth, demographic bonus, penetration of electric vehicles and the digital era, as well as increasing trends in the use of new and renewable energy, will be a catalyst for changing the motorcycle industry ecosystem towards energy-saving and environmentally friendly following global trends," said Agus.

The Minister of Industry stated that the government will continue to oversee this investment. PT Piaggio Indonesia to realize a win-win for companies, the government, and the Indonesian people. For that, Agus advised that PT Piaggio Indonesia can involve as many small and medium scale component industries as possible to be part of its supply chain.

"We also encourage PT Piaggio to develop motorcycle electrification technology and make Indonesia a production base and export hub for Italy's iconic motorcycles from Indonesia to the world," said Agus.

 

 

 

 

 

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A post shared by Agus Gumiwang Kartasasmita (@agusgumiwangk)

The Minister of Industry is optimistic about the business development run by PT Piaggio Indonesia, through the assembly of the Vespa "Made in Indonesia," can become one of the flagship products of Indonesia's pride. On the other hand, it is also able to increase consumer loyalty to the iconic brand.

Managing Director and Country CEO of PT Piaggio Indonesia, Marco Noto La Diega, said that the realization of this investment could not be separated from the support of the Government of Indonesia. For this reason, Piaggio looks forward to furthering support and cooperation. Hopefully, this development can strengthen the company's existence and impact the economy, such as creating job opportunities and strengthening relations between Indonesia and Italy.

"We believe this project will strengthen PT Piaggio Indonesia's contribution to the automotive sector, as well as enhance experience and engagement with our brand," said Marco.

Agus said that in the third quarter of 2021, the growth of the transportation equipment industry sector showed an astonishing number, reaching 27.84 percent. This double-digit growth was recorded by the transportation equipment industry for two consecutive quarters.

"In fact, for motorcycle sales data, in the third quarter of 2021, there were 1.52 million vehicles sold, an increase of 30 percent compared to the third quarter of 2020. This huge increase indicates an economic recovery that is on the right track," said Agus.

The potential of the national motorcycle industry currently amounts to 26 industrial companies with a total investment value of Rp 10.05 trillion for an overall production capacity of 9.53 million units per year and more than 1.5 million people who work along the industrial value chain. In addition, Indonesia has a target to reach the top seven of the world's economies by 2030. This means that with this position, people's purchasing power of motorized vehicles will increase.

Currently, domestically produced motorcycles have penetrated the export market to various countries in Asia, Western Europe, and Latin America. The export performance of two- and three-wheeled motorcycle products in the January-September 2021 period was recorded at 626 thousand units, with foreign exchange generated reaching Rp 14.5 trillion.