CIKARANG-PT SAIC General Motors Wuling (SGMW) Motor Indonesia (Wuling Motors) started its mass product process for Multi Purpose Vehicle (MPV) type car called Confero S, for Indonesian market. The mass production of this 1,500 cc vehicle, involving more than 3,000 local workers spread across the entire upstream and downstream industry chain.
Vice President of the Republic of Indonesia Jusuf Kalla (JK), congratulated on the inauguration of this Wuling car industry. He also admitted deeply appreciate, over the course of the industry in a short time, specifically two years from the start of the factory was built until the industry is running.
For your information, Wuling Motor has started the construction of its factory and supplier park with the first stone laying in August 2015. With total investment of Wuling Motor project in Indonesia reached USD 700 million, until now this factory has been actively producing.
Furthermore, Kalla said that the progress of the country can be seen from two developing industries. The two industries are the vehicle and housing industries.
"Both of these industries have a large multiplier effect, such as car industry, for example, in the upstream will require other industries such as steel, plastics, rubber, and others. In addition, the distribution requires so many employees, that is why the vehicle industry has a good impact for the progress of a country's industry," said Vice President Jusuf Kalla, at the Inauguration of PT. SGMW Motor Indonesia, at Industrial Zone of Greenland International Industrial Center Block BA No. 1, Deltamas, Sukamahi Village, Cikarang District Central, Bekasi Regency, Tuesday (11/07/2017).
Vice President Kalla said in Indonesia itself, the car industry has been running for a long time. Looking at the 'serious' Wuling Motors industry, JK believes the Chinese industry will now always pay attention to the best quality, and pay attention to affordability for Indonesian consumers.
"So the Indonesian people have a lot of choices in the market and it is expected that the manufacturer can provide good distribution and after-service," he said.
With the population of 260 million people in Indonesia, JK explained that it takes a lot of transportation facilities including vehicles. Of course it does have the effect of one of which is jamming.
"The congestion of an advancement we do not balance with infrastructure, so we try both," he added.
JK was determined to offset the congestion with the construction of mass transportation.
Furthermore JK wants, in the not-too-distant future, 'local content' or to say local ingredients in this industry, will be more and more, and giving more jobs to the Indonesian people.
"West Java is Indonesia's most populous province and an industrial hub. It can provide an example of other industries developing this region," JK said.
West Java Governor Ahmad Heryawan (Aher) also appreciates the speed of the presence of Wuling Motor in Indonesia.
"Time of 2015 ground breaking, now it is operating, hopefully the presence of this factory presents goodness for the people of West Java in particular," said Aher.
Aher assessed the positive presence of large industries in West Java, only the West Java manpower that can be absorbed well. Moreover, West Java and Guang Xi Province, as one of the main shareholders in Guangxi Automobile Group company, in addition to two other companies namely SAIC Motor Corporation Limited and General Motors (China), there is a close relationship that is Sister Province relationship.
Aher is confident, West Java also becomes the biggest market for this industry. In this Sister Province umbrella, it will present many other profitable partnerships.
Minister of Industry Airlangga Hartarto, explained that this automotive business is present in Indonesia with an investment close to Rp 9 trillion. The factory is built on 60 hectares of land, with 30 hectares of which are built industrial park suppliers involving 16 suppliers, consisting of 14 Chinese suppliers, 1 from the United States, and 1 from Germany.
This integrated component industry supports the assembly of Wuling brand vehicles to be produced. Production capacity can reach 120,000 units per year, and it targeted domestic market or export to ASEAN market.
"The entire industrial chain employs more than 3,000 manpowers in West Java, and the company also cooperates with vocational high school (SMK), as many as 100 vocational students are given the opportunity to study in China every year," explained Airlangga.
"The automotive industry has become a mainstay industry that underpins the national economic growth, with non-oil sector contribution reaching 10.47%, the third largest under the food and beverage industry, electronic computers, and electrical equipment," he said.
Minister of Industry Airlangga noted, the automotive industry has employed 900,000 workers in Indonesia directly or indirectly. With an industrial market of 1.1 million and an export of 200,000 until today, where national automotive production reaches 600,000 or nearly 60% is in Cikarang area.
By making a good industrial roadmap, it is expected the industry will run continuously. He also hopes local raw materials supply, will be used 100% in 2019, which until now is only 56%.
President of SGMW Motor Indonesia Xu Feiyun, said that the construction of Wuling Motor's first factory outside of China showed a strong and long-term commitment to enter the Indonesian market.
"We are ready to contribute to the growth of the Indonesian economy, especially the automotive industry," he added.
Using advanced technology and international standard equipments, Wuling Motor's factory also adapts Global General Motors (GM) global technology, which is used throughout GM's manufacturers worldwide, to ensure that Wujing Motor meets international standards.
Wuling Motors has also brought in renowned international component suppliers who will occupy its park suppliers and have also been working with local component suppliers. The supplier partners of Wuling Motors are Bosch, Continental, and PT Gajah Tunggal TBK.
"As part of the local strategy, 56% of Wuling Motors' first MVP components are currently from local suppliers and we will continue to increase the number of local component suppliers to join us in their supplier park," Xu Feiyun added.
Present at the Chairuman of the board of SAIC Group and SGMW Chen Hong, Vice Governor of Guang Xi Province LanTianli.