Visit The Chery Manufacturing Plant, Deputy Minister Of Industry Encourages Increase In Local Content

Dok/Kemenperin

Visit The Chery Manufacturing Plant, Deputy Minister Of Industry Encourages Increase In Local Content

Wednesday, 08 Jan 2025

The Deputy Minister of Industry, Faisol Riza, praised PT Chery Motor Indonesia for achieving a Domestic Component Level (TKDN) of 40 percent. He encouraged the Chinese automotive company to gradually increase this level further.

"Currently, Chery's TKDN is at 40 percent. However, I believe that in the future, Chery can raise it to 60 percent," said the Deputy Minister during his visit to the Chery Motor Indonesia manufacturing plant in Pondok Ungu, Bekasi, West Java, on Tuesday (January 7).

Faisol also mentioned the importance of increasing investment through the establishment of an independent factory. At present, Chery Motor Indonesia collaborates with PT Handal Indonesia Motor (HIM) for local assembly, with a production capacity of 10,000 units per year since 2022.

"With an independent factory, Chery can not only boost production capacity and expand its export market beyond ASEAN but also create new job opportunities in Indonesia and enhance national economic growth," Faisol stated.

During this visit, the Deputy Minister was accompanied by Commission VII member of the Indonesian House of Representatives, Kaisar Abu Hanifah, and the Director of Maritime Industry, Transportation Equipment, and Defense Equipment (IMATAP), Dodiet Prasetyo, who observed the production and assembly processes of various Chery models at PT Handal Indonesia Motor.

Faisol also had the chance to test drive the latest electric SUV, the Chery iCAR 03 (J6), which has achieved a TKDN of 40 percent. He noted that the iCAR 03 brand, along with other models produced by Chery, has the potential to compete in the global market.

"This shows that Indonesia is capable of producing quality vehicles. The government is committed to supporting the automotive industry’s growth through regulations and incentives, including VAT and luxury tax incentives, particularly for electric vehicles," he explained.

PT Chery Motor Indonesia and PT HIM are set to launch several new models this year, including the TIGGO Cross, OMODA 5 MY, TIGGO 7 PHEV, OMODO E5 Modification, iCAR 03, TIGGO 8 PHEV, TIGGO 9 PHEV, and TIGGO 8 Plus.