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VIVA – The automotive industry plays an important role in increasing Indonesia's economic growth. Indonesia is also an investment heaven for automotive companies. The Minister of Industry, Agus Gumiwang Kartasasmita said that automotive companies from Japan, South Korea and China are very passionate about investing in Indonesia.
From the results of the meeting of the Minister of the Economy, Airlangga Hartarto and the Minister of Industry, Agus Gumiwang together with the leaders of automotive companies in Japan, an investment commitment from the Mitsubishi Motor Company (MMC) of Rp10 trillion will be realized from 2022 to 2025.
"Mitsubishi continues to realize its commitment to make Indonesia a production base for hybrid cars and increase export markets, including expanding new export markets, from 30 to 39 countries, until 2024," Agus Gumiwang said in Jakarta on Friday, July 29, 2022.
Menperin Agus Gumiwang hadir di Jakarta Auto Week 2022
- VIVA/Muhammad Thoifur
The Ministry of Industry appreciates and supports the realization of this commitment, and conveys some hopes to Mitsubishi such as to accelerate the Battery-Based KBL Technology Vehicle Production Program or EV keycar in Indonesia, as well as to export SUV-type vehicles from Indonesia to the Australian market within the next one year.
"We also ask these industry players to increase the use of local Indonesian components, especially components from small and medium industries (IKM). We also conveyed this at the automotive industry business forum in Japan, last June," the Minister of Industry explained.
Not only from Japan, automotive companies from South Korea also continue to increase investment.
The South Korean vehicle company, Hyundai, has started mass-producing vehicles for the B-SUV, MPV, and EV SUV types at the Karawang factory, West Java, since January 2022.
As reported from Kemenperin.go.id, Hyundai has also launched the Ioniq 5, the factory's first electric vehicle in March 2022.
In the first phase, Hyundai invested US$750 million in Indonesia with a total production capacity of 150,000 units per year, of which currently are used to produce 3000 EVs each year and will be increased according to demand.
Currently, China is also planning to invest in Indonesia in the form of Chery Motor. Chery's company has met several times with the Minister of Industry to discuss an investment plan that will start running in 2022 with a total investment commitment of around US$ 1 billion.
In 2022, Chery will gradually start producing SUV-type vehicles with a total of nine models and some of them are for export. Furthermore, PT Chery Motors Indonesia will carry out four stages of investment until 2028.
"In 2022, Chery will start producing SUV-type vehicles. Then, in four stages of development until 2028, the factory will produce nine models, with a proportion for the export market as well,” the Minister of Industry remarked.
Menteri Perindustrian Agus Gumiwang Kartasasmita.
- Dok. Kemenperin
He added that Chery had conducted intensive communication with the Ministry of Industry and expressed a commitment to make Indonesia an ASEAN hub and part of the company's global exports.
Furthermore, there are two other automotive companies from China that plan to produce EVs, namely PT SGMW Motor Indonesia (Wuling) with a production capacity of 10,000 units each year and PT Sokonindo Automobile with a production capacity of 1,000 units each year.
Agus Gumiwang revealed that there were many investors who submitted proposals to contribute to the development of the electric vehicle ecosystem in Indonesia, including the EV battery industry.
One of them is a consortium consisting of Hyundai Motor Company, KIA Corporation, Hyundai Mobis, LG Energy Solution, and Indonesia Battery Corporation (IBC).
In addition, the company Contemporary Brunp Lygend Co., Ltd. (CBL) together with Aneka Tambang (Persero) and IBC are also collaborating to carry out EV battery integration projects, starting from nickel mining and processing, EV battery products, EV battery production, and battery recycling with a total investment in Phase I of around US$6 billion.
