Summit puts a spotlight on booming automotive industry in Indonesia

The automotive industry in Indonesia stands as a cornerstone of the nation’s economy, playing a pivotal role in its development. Indonesia, the ASEAN region’s largest vehicle market and second only to Thailand in production, anticipates substantial growth in the years ahead. By 2026, Indonesia’s vehicle production is projected to reach 1.62 million units, up from 1.39 million units in 2021, marking an average annual growth of 2.3%. This sustained growth reflects Indonesia's attraction as a manufacturing base for global automotive giants, especially in automobiles, motorcycles, and auto parts.

As the country commits to its Net Zero Emission (NZE) goals by 2060, the automotive industry is poised for transformation. This commitment is sparking a shift towards producing electric vehicles (EVs) and fuel-efficient, low-emission vehicles, opening doors for manufacturers in the auto parts, components, and automotive plastics sectors. The Indonesian government's push towards sustainable practices further supports a strong market for eco-friendly vehicle solutions, paving the way for future automotive innovations.

Trends in flexible production and EV solutions

To address these emerging trends and support the shift toward sustainable automotive production, the 2024 ASEAN Advanced Automotive Manufacturing Summit - Flexible Production & EV Solutions, returned to Cikarang. This event, launched by Ringier Events in 2023, gathered industry leaders from across the globe to exchange insights, explore technological advancements, and discuss the latest trends shaping the automotive sector in Indonesia and ASEAN.

This annual summit brings together foreign and Indonesia-based professionals to dive into the latest production techniques, focusing on the entire parts and components manufacturing chain. The event provides the latest developments in high-performance materials, machine, and precision tools, testing equipment, metal and plastics machinery, e-mobility innovations, robotics, automation, and augmented reality applications. Valuable trends and insights from the industry experts are particularly relevant for automotive and motorcycle production in the region.

The Summit’s business partners are CP Chemie Resources and Radici Plastics (Suzhou) Co. Ltd. This collaboration enabled both companies to capitalise on their respective strengths to offer enhanced value to customers across multiple industries.

With support from notable associations, including the Indonesia Automotive Parts & Components Industries Association (GIAMM), the Indonesian Society for Quality (ISQ), and the Indonesia ISO Expert Association, the summit underscores the importance of collaboration and industry standards in achieving sustainable growth.

Distinguished speakers and engaging sessions

This year’s summit attracted over 170 qualified delegates from Indonesia’s automotive industry to the Nuanza Hotel and Convention Center in Cikarang, where attendees gained valuable insights from some of the industry’s most respected figures. Building on that success, this year’s conference offered an impressive lineup of speakers and presentations that promise to deepen understanding of critical automotive advancements.

The sessions started with Mr. Kukuh Kumara, Secretary General of Indonesian Motor Vehicle Industry Association (GAIKINDO), who set the stage by discussing global trends and strategies to secure a competitive edge in today’s fast-evolving automotive landscape. Mr. Kumara provided valuable insights on the growth of Indonesia’s automotive industry in response to the global trends. The Indonesian Motor Vehicle Industry Association (GAIKINDO) is a non-profit organization whose members brand holding agent companies (APM) consisting of motor vehicle manufacturers, motor vehicle distributors, and manufacturers of the main components of motor vehicles (manufacturers). 

Mr. Kan Huang, Strategic Marketing & Business Development Manager of  RADICI Plastics (Suzhou) Co., Ltd.

Mr. Kan Huang, Strategic Marketing & Business Development Manager of RADICI Plastics (Suzhou) Co., Ltd., discussed material innovations tailored to meet the sector’s unique challenges, introducing cutting-edge materials that address the latest demands in automotive production. Founded in 2006, RADICI Plastics (Suzhou) Co., Ltd., is a subsidiary of RadiciGroup in China, mainly producing a complete range of engineering polymers such as PA, PBT, TPE, POM etc., Its products are widely used in automotive, electrical/electronics, consumer goods and industrial applications, with sales networks all over China including Suzhou, Shanghai, Changsha, Guangzhou, Shenyang etc.

Mrs. Vita Auliana, Assistant Manager of PT Toyota Motor Manufacturing Indonesia, had an interesting presentation that focused on efficiency with her insights into vendor development programs in automotive manufacturing and how these initiatives can significantly boost operational performance. Mr. Rachmad Basuki, another Secretary General from Indonesia Automotive Parts & Components Industries Association (GIAMM), offered an industry overview highlighting Indonesia’s strategic role as a manufacturing hub for auto parts production, underscoring the country’s increasing influence in the region’s automotive supply chain. GIAMM is the leading association for the automotive parts and components industry of Indonesia with a vision to “promote the development and the welfare of automotive component industry in Indonesia to be competitive internationally”.

The presentation of Mr. Lim Soon Keat, Technical Manager of CP Chemie Resources (M) Sdn Bhd, highlights the role of thermoplastic elastomers in automotive applications, underscoring the importance of lightweight and sustainable materials in today’s production processes. CP Chemie Resources was established in 2010 and a sister company of Ever Polymer (Taiwan). It specialises in supplying and formulating thermoplastic elastomers (TPE) to suit a variety of applications, adhering to ISO 9001 standards. Its TPE products are marketed under the brands PERFLEX and EVERLON.

Mr. Moch Malik, Founder of the Indonesian Society for Quality (ISQ), presented strategies for efficient assembly processes, with a focus on enhancing quality assurance and performance outcomes. In addition, Mr. Novian Amrah Putra, Chairman of the Indonesia ISO Expert Association (IIEA) provided insights into the rigorous testing, inspection, and certification standards required in the automotive industry to maintain excellence and reliability. Mr. Oei Jam Tjhioe, Chairman of the Metal and Machining Association (ASPEP), highlighted opportunities in Indonesia’s EV sector, discussing how the nation can leverage technology investments to expand electric vehicle production.

Providing an overview on the future of electric vehicles, Mr. Padjar Mahmud, General Manager of PT Unipres Indonesia, discussed EV growth and innovative stamping techniques relevant to the ASEAN region. Moving to the motorcycle market, Mr. Hari Budianto, Secretary General of the Association of Indonesian Motorcycle Industry (AISI), offered insights into emerging trends in this thriving sector, which continues to capture consumer interest across Indonesia. Rounding out the sessions, Mr. Molas Sewarto, Quality Assurance Director at PT Utac Manufacturing Services Indonesia, delved into the semiconductor-enabled revolution that is reshaping the automotive industry, focusing on how semiconductor technology is pivotal to advancing modern automotive systems.

This year's summit delivered an enriching experience for attendees, blending expert insights with actionable knowledge that participants can apply within their own organisations to stay at the forefront of automotive innovation.

Delegates visited the booth of CP Chemie

Factory tours at Kawasaki Motor Indonesia and Unipress Indonesia 

The second day of the summit featured two factory tours, offering participants a closer look at the automotive manufacturing landscape in Indonesia. Attendees visited Kawasaki Motor Indonesia in Cikarang and Unipres Indonesia in Purwakarta.

At Kawasaki Motor, the visit was graced by the Board of Director, Mr. Kawai San, and the company’s marketing team led by Mr. Antudrikal Qomar, who gave an orientation on the product line up highlighting its latest EV motorcycles. The delegates had a chance to witness firsthand the production process from frame assembly to engine assembly and quality inspection.

The second factory visit at Unipres was hosted by its General Director, Mr. Pajar Machmud. The delegates learned the products and services of the company and how they can leverage the stamping solutions that Unipres offers.

These tours aimed to facilitate networking, information exchange, and collaboration while providing attendees with technical insights relevant to Indonesia’s automotive and auto parts production sector.

The 2024 ASEAN Advanced Automotive Manufacturing Summit is a unique opportunity for professionals and stakeholders to learn, network, and explore the future of the automotive industry in Indonesia. With the industry's growing focus on EVs and sustainable production, this summit is a step forward in fostering innovation and collaboration across ASEAN's automotive landscape.