Kemenperin Assists Cycling Industry to Increase Its Competitiveness Levels

Jakarta – The Industry Ministry (Kemenperin) is helping the local bicycle industry improve its competitiveness levels to compete in the global market. One form of support is to provide businesses easier access to obtain Indonesian National Standard Certificates (SPPT SNI). 

Industry Minister Agus Gumiwang Kartasasmita explains that the Kemenperin is driving local bicycle manufacturers and businesses to implement better management systems by providing them the assistance needed. 

“Through these strategies, we hope that our bicycle manufacturers can compete properly on the global market and can fulfill both domestic and international demand for their products,” Minister Agus said during a SPPT SNI handover event at PT Kreuz Bike Indonesia, manufacturers of the Kreuz folding bicycle line, on Thursday (4/2). 

As stipulated in Kemenperin Decree no. 30/2018 on Bicycle Industry Standardization, all local bicycle manufacturers must possess SPPT SNI certificates to do business, in order to promote fair domestic competition.  

“The mandatory SNI rule also aims to ensure the safety of bicycle users,” he added.

Going forward, Minister Agus hopes that the bicycle manufacturing industry can develop to the point where it is able to create a large number of jobs. During the COVID-19 pandemic, domestic demand for bicycles rose dramatically to 8 to 9 million units.   

Minister Agus has instructed the Bandung-based PT Kreuz Bike Indonesia to focus on the next step: having their bicycles fulfil TKDN standards, which require the mandatory use of locally sourced components in their products.

“Kreuz’s folding bicycles currently fulfill 70% of TKDN requirements, which is a good amount. The company is already able to produce its own bike frames,” he elaborated.  

Kemenperin’s head of industry standardization and policy affairs (BSKJI) Doddy Rahadi hopes that the technical assistance given to PT Kreuz Bike Indonesia would not only help drive productivity levels, but also steer the local industry towards using local components in their bikes. 

“BSKJI Kemenperin will certainly continue to support our national industries by providing services such as product certification, quality certification, industry consultation, design consultation and many others,” Doddy said. 

Through the technical assistance and SPPT SNI certification provided by the Kemenperin, Kreuz reported that it is now able to produce up to 160 units per month, improving enormously from its previous production rate of 10 to 15 units per month. The company have now also outlined plans to export their bicycles to Singapore, Malaysia and Australia. 

According to data from the Indonesian Cycling Industry Association (AIPI), 3 million to 3.5 million bicycles (out of 8 million) produced in Indonesia in 2020 were produced by local companies. 

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