ASIATODAY.ID, JAKARTA – Automotive manufacturer from China, Chery, has the ambition to make Indonesia a production base in Southeast Asia.
To realize this ambition, Chery plans to invest capital in stages.
Executive Vice President of PT Chery Sales Indonesia Qu Ji Zong said that his party had signed an agreement with the Indonesian government to follow the entire investment process with regulations that apply for a period of up to 5 years.
In the completely knocked down (CKD) stage, Chery collaborated with PT Handal Indonesia Motor to assemble the Omoda E5 electric car product locally with an investment of around 250 billion rupiah.
“In the first 2 years, we will invest and send all the details to the government,” he said in Jakarta, quoted on Tuesday, February 6 2024.
According to him, Chery is the first automotive manufacturer to meet the domestic component level (TKDN) requirement of at least 40% through the CKD scheme.
However, he has not mentioned how much investment Chery will disburse over the next 5 years. Currently, the Chinese brand is still focused on boosting the level of domestic components.
Meanwhile, Chery has just released the price of the Omoda E5 electric car starting from 498.8 million rupiah. This nominal includes a reduction in value added tax (VAT) from 11% to 1%.
Exports to Vietnam to Thailand
Zong also explained that Chery would export to several neighboring countries, such as Vietnam, Thailand and the Philippines. Qu Ji Zong
Currently, Chery has started its production facilities in Indonesia and started sending units to countries in Southeast Asia this year. Products that will be produced and shipped from the Indonesian factory will include internal combustion engines (ICE) to the Omoda E5 battery electric vehicle (BEV).
“Indonesia will be the first country in Asia to export Chery cars,” he said.
Separately, the Coordinating Minister for the Indonesian Economy, Airlangga Hartarto, said that Indonesia was the first market outside China to launch the Chery Omoda E5 electric car product.
Airlangga said that Chery was ready to produce up to 300 electric cars per year.
“We encourage Chery to become an EV producer that can be exported to other countries. “Chery is also committed to building through a CKD scheme with a TKDN of 40%,” he said. (AT Network)
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