ocally made car brand Esemka may be Indonesia's pride but substantial challenges lie ahead for the development of a local automotive manufacturing industry against the backdrop of low demand and weak connectivity domestically and with the international supply chain.
President Joko “Jokowi” Widodo brought Esemka to the public’s attention in 2012 when he was mayor of Solo, Central Java. At the time, he chose the car, which was assembled by vocational high school students in Solo, as his official vehicle.
Seven years later, he opened a new path for Esemka by inaugurating the production facility of PT Solo Manufaktur Kreasi, the car’s manufacturer, in Sambi, Boyolali, Central Java. Two Esemka models, the 1,200 cc and 1,300 cc commercial pick-up trucks, Bima 1.2 and Bima 1.3, respectively, were introduced to the public at prices of around Rp 110 million (US$7,819) per unit.
“These Esemka cars are the nation's creation,” said Jokowi during the ceremony on Friday. “Although their raw materials are not 100 percent domestically sourced yet, we hope that going forward the Esemka can use 100 percent raw materials from Indonesia.”
Industry Minister Airlangga Hartarto said 60 percent of Esemka’s Bima components were produced domestically while the 300 or so people working in the factory were mostly vocational school graduates in Solo.
"I don't force you to buy the cars, but they are indeed good ones, I’ve seen them myself. If people still buy imported cars, it will be outrageous," Jokowi said, expressing the hope that the facility’s opening would have a positive impact on the economy of Central Java, especially Boyolali, since the automotive industry involves many other industries and creates multiplier effects.
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