Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita has asked the Indonesian automotive industry to produce mining trucks that are suited to the mining conditions in the country.
According to him, industry players can initiate such development by making assembly details with specifications based on the mining conditions in Indonesia.
"We encourage the domestic industry to immediately prepare truck products that comply with mining specifications. We ask them to at least make an assembly line first," he said at the 2024 P3DN Awards Kick-Off in Jakarta on Monday.
The minister noted that the request is due to the growth experienced by the mining sector every year.
Kartasasmita said that the need for natural resources obtained from mining is quite large. Therefore, the supporting tools and equipment must be suitable and made domestically.
By starting the assembly line, the mining sector can also make a fairly high contribution to the domestic component level value (TKDN), he added.
"We can gain TKDN value from this program because the need in this sector is quite large. The coal industry is growing, other commodities in minerals are also growing. Therefore, we must prepare the supporting industry," he informed.
Based on data from the Indonesian Heavy Equipment Association (Hinabi) in 2023, heavy equipment production in Indonesia reached 8,066 units.
Meanwhile, in 2022, the number of heavy equipment produced reached 8,826 units. On an annual basis (year on year), heavy equipment production fell by 8.61 percent.
The Ministry of Energy and Mineral Resources (ESDM) said that in 2023, the mineral and coal sub-sector contributed Rp173 trillion (US$11 billion) to non-tax state revenue (PNBP), or 58 percent of the total national PNBP, with most of the exports flowing to India, China, Japan, the Philippines, and Malaysia.
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Translator: Ahmad Muzdaffar F, Resinta Sulistiyandari
Editor: Rahmad Nasution