Friday, 18 October 2019 | 06:19 WIB

Indonesia‘s Toy Export Surpasses US$ 319 Million

Indonesia Minister of Industry Airlangga Hartarto (special)

JAKARTA, NETRALNEWS.COM - The toy industry is one of the manufacturing sectors capable of contributing significantly to the national economy. This is reflected in the achievement of the export value of children's toys in 2018 which reached up to USD319.93 million or an increase of 5.79 percent compared to the previous period of USD302.42 million.

"The national toy industry has demonstrated its competitiveness in the global arena. This is at the same time able to prove that Indonesia is included in the main producing countries for some of the leading toy products that have become global, "said Minister of Industry Airlangga Hartarto in Jakarta.

For this reason, the Ministry of Industry continues to spur the development of the domestic toy industry. Moreover, the sector is classified as labor intensive and export oriented. In 2017, the investment value of the toy industry in Indonesia reached IDR 410 billion, with the number of workers absorbed as many as 23,116 people.

"For example, PT Mattel Indonesia has absorbed a workforce of 10,000 people with the value of exports in the past five years averaging over USD150 million per year," said the Minister of Industry.

Airlangga also claimed to be proud because Indonesia is the largest Barbie brand doll manufacturer in the world produced by PT Mattel Indonesia. This company supplies 60 percent to all global markets or has outperformed Chinese production. "So, six out of 10 dolls circulating in the world come from Indonesia, made with skilled hands of our nation's children," he said.

Interestingly, Indonesia has a car factory with a large production capacity of 50 million units per year. "The Hot Wheels factory in Cikarang owned by PT Mattel Indonesia is a mini car industry with a capacity 50 times greater than the real automotive industry," he said. Hot Wheels are diecast cars or made from printed metal.

Not only in terms of the astonishing amount of production, the Minister of Industry said, this factory has also applied industrial 4.0 technology in its production process. "In addition to being able to produce quality Barbie and Hot Wheels, this company also has local engineering capabilities that have extraordinary innovations in making their own sophisticated machines," he said.

In an effort to spur the competitiveness of the national toy industry, the government has sought to protect domestic products and markets and avoid the onslaught of non-quality imported products through the application of the Indonesian National Standard (SNI). "The implementation of SNI is able to increase the competitiveness of domestic products," Airlangga said.

In addition, the application of SNI provides guarantees for products entering the domestic market, which are quality and safe for consumers and penetrate the export market. "The product standard is a technical barrier that can be accepted by all countries, because it provides a positive effect, including guaranteeing the safety, safety and quality of products," he added.

Chairperson of the Children's Toys Association (AMI) Sutjiadi Lukas predicts that the domestic toy industry in 2019 can grow by 10 percent year-on-year (yoy). Moreover, the potential of the toy business in the country is prospective.

Because, Indonesia is a country with the largest population in the ASEAN region. "With an average birth rate of 4.5 million people per year, Indonesia can become the largest market in Southeast Asia," he explained.
In addition to meeting the needs of the domestic market, AMI also boosted the national toy industry to be more aggressive in expanding the export market. The closure of several toy factories in Vietnam made the toy industry in Indonesia an abundance of orders.