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resident Joko '€œJokowi'€ Widodo has pledged stronger state backing for locally made car Esemka as the Central Java-based car manufacturer is likely to see a revamp in its business model to boost production and profitability.

The President gathered on Wednesday evening executives of PT Solo Manufaktur Kreasi (Esemka) and top policymakers from the office of the Coordinating Economic Minister and the Industry Ministry to discuss possible support for the locally made car, which boosted Jokowi'€™s popularity when he was the mayor of Surakarta in Central Java.

The meeting concluded with an agreement to restructure the business model of Esemka, which will focus on producing cars for farming and agriculture purposes, rather than competing with automotive giants such as Honda and Toyota in the passenger car segment.

In this case, Esemka could produce small trucks or pickups with low-capacity engines intended to transport vegetables, oil palm fruit and other agricultural commodities, thus allowing the company to thrive in a completely new market segment, said Coordinating Economic Minister Sofyan Djalil.

'€œIt'€™s not feasible [for Esemka] to compete with global automotive giants as we lag far behind them,'€ he told reporters after the meeting.

'€œThis is why they should tap a new market segment, such as vehicles for agriculture or inter-village transportation purposes,'€ added the minister

According to Sofyan, the President agreed that Esemka should take small steps first, as it was expected to produce about 500 vehicles a month, which would be enough for the company to thrive financially and sustain its production capacity in the long run.

The initial capital outlay for Esemka to start mass production would be at least Rp 100 billion, the minister said.

The first Esemka car, formerly called the Kiat Esemka, was produced by students of SMK 1 Trucuk, a state-run vocational high school in Klaten, Central Java, in 2011. The cars made headlines after Jokowi, then Surakarta mayor, decided to use them as official vehicles for himself the deputy mayor, FX Hadi Rudyatmo, with such a policy catapulting Jokowi'€™s name onto the national stage. An average of 10 Esemka cars have been produced monthly since 2013, according to company data. A sports utility vehicle (SUV) model sells for Rp 140 million while the pickup type goes for Rp 65 million.

Industry Minister Saleh Husin said his ministry would prepare a road map to support Esemka'€™s plan as well as design the necessary industry incentives so that the company could thrive in the agriculture and inter-village transportation segment. The ministry would also assist Esemka in promoting the use of local content in its vehicles, he pledged.

Indonesia, Southeast Asia'€™s largest economy with a growing middle-class and rising purchasing power, is seen as a jewel among car manufacturers. Car production here topped 1.2 million last year, with Japanese carmakers such as Toyota, Honda and Mitsubishi accounting for roughly 90 percent of production.

Local firms have tried to design their own cars but have yet to mass produce them. Besides Esemka, other Indonesian-made cars receiving publicity in the past include Gea, created by state-owned train manufacturer PT Industri Kereta Api (Inka); Tawon, produced by Banten-based PT Super Gasindo Jaya; and Fin Komodo, made by West Java-based PT Fin Tetra Indonesia