Jakarta: Continuing the working visit agenda in Japan, the Minister of Industry Agus Gumiwang Kartasasmita held a meeting with the ranks of Isuzu Motors Ltd. in Tokyo, Japan.
"Isuzu said that they would move the truck factory from Thailand to Indonesia and start production in 2024," said Agus conveying the results of the meeting, quoted in a written statement, Thursday, June 8, 2023.
The factory that will be moved produces UD Trucks, which were originally owned by Volvo and taken over by Isuzu in 2019.
"We express our appreciation for Isuzu's decision and hope that the relocation of the production base will go well. We will prepare various facilities, including incentives, to support the process of moving the factory," said Agus.
In Indonesia, the Isuzu factory located in Karawang has a fairly high utilization rate, reaching 85 percent. Production in 2022 will be 44,694 units or 15 percent of Isuzu's total worldwide production.
In 2022, Isuzu Indonesia's exports will reach 8,254 units of Completely Built Up (CBU) vehicles. In 2023, Isuzu targets to increase exports from last year's 25 countries.
"For this reason, Isuzu asks for support from the Indonesian government for easy exports," said Senior Executive Officer Isuzu Motors Ltd. Yasuyuki Niijima.
Agus also hopes that Isuzu can increase the use of domestic components in the assembly process, one of which is by encouraging the types of vehicles that are still being assembled using the Completely Knocked Down (CKD) import scheme to be changed to Incompletely Knocked Down (IKD).
As for vehicles that have been assembled through the IKD import scheme, in order to increase the use of domestic components. For Isuzu, Agus pushed to be able to expand the export market, especially to Africa.
Responding to the request, Niijima agreed that the African market has tremendous potential. "We will pursue production volumes in Indonesia as well as increase marketing exploration in Africa," he said.
The Isuzu Indonesia factory currently produces Isuzu Traga commercial vehicles which are exported to various countries, with the main markets being the Middle East and the Philippines. According to Niijima, Indonesia is a very important country for Isuzu, both as a market and vehicle production center.
Isuzu will work to increase its exports to 150 countries. He added, with the start of UD Trucks production in 2024, Isuzu will also need additional workers. (Kevin Schreiber)
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