ASIATODAY.ID, CIKARANG — Mercedes-Benz, through PT Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI), has officially inaugurated a new factory in the Delta Silicon 8 Industrial Area, Cikarang, West Java. The facility, built with a total investment of IDR 500 billion (approx. USD 31 million), underscores Daimler Truck AG’s long-term commitment to strengthening Indonesia’s commercial vehicle industry and supporting the global shift toward sustainable mobility.
Despite global economic uncertainties, Indonesia’s automotive industry continues to show strong momentum. Global manufacturers, including Mercedes-Benz, are expanding their production capacity to meet increasing demand in both domestic and export markets.
“Many multinational companies, especially in the automotive sector, still see Indonesia as a promising hub for manufacturing,” said Minister of Industry Agus Gumiwang Kartasasmita during the inauguration ceremony on Tuesday, June 10, 2025.
According to the Minister, the establishment of this new facility signals continued optimism for automotive investment in Indonesia. With its strategic location, Indonesia has been chosen as a key production base for Mercedes-Benz trucks and buses in the Asian region.
“This is a tangible sign of Daimler Truck AG’s confidence in Indonesia’s industrial future. We are optimistic that Indonesia can become a global hub for the commercial vehicle industry,” Agus added.
The new factory will produce flagship models such as Mercedes-Benz Axor Trucks (2528 CH, 4928 T, 4028 T, 4023 T, 2528 RMC, 2528 CX, 2528 C) and Mercedes-Benz bus chassis (OH 1626 L and OH 1626 S), designed specifically for the Indonesian market.
Prioritizing Eco-Friendly Commercial Vehicles
With a production capacity of 5,000 units per year, the DCVMI factory is now among the top five commercial vehicle manufacturers in Indonesia. The government expects this facility to lead in producing eco-friendly commercial vehicles, in line with the global trend toward green mobility.
“We hope DCVMI will take the lead in producing low-emission trucks and buses, especially those meeting Euro 5 and Euro 6 standards for export markets. The Ministry is ready to support this through various fiscal and non-fiscal incentives,” said the Minister.
The factory has already adopted Selective Catalytic Reduction (SCR) technology and uses Diesel Exhaust Fluid (DEF), aligning with Euro 4 emission standards to reduce environmental impact.
Currently, the average local content (TKDN) in DCVMI’s product lineup is around 28.08%. The government urges manufacturers to increase this percentage to strengthen the national automotive supply chain and reduce dependency on imports.
Between January and March 2025, Indonesia’s commercial vehicle trade recorded a deficit of USD 608.7 million (approx. IDR 9.7 trillion). Strengthening local production and boosting exports are considered crucial steps to address this gap.
“We welcome DCVMI’s commitment to developing local supply chains and creating more job opportunities through this new factory. This will strengthen our domestic industry and improve export competitiveness,” said Agus.
DCVMI President Director Sankaranarayanan Ramamurthi emphasized that the factory’s inauguration marks a new growth phase for the company in Indonesia.
“This facility is more than just an infrastructure project—it’s a manifestation of our vision to contribute to Indonesia’s economy, empower local communities, and build a resilient industrial ecosystem. Every unit produced here reflects our engineering excellence and collaborative spirit,” he stated.
Spanning 15 hectares, the Mercedes-Benz plant in Cikarang is expected to become a central player in Indonesia’s automotive growth, especially in the commercial and sustainable vehicle segments. (AT Network)
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