automotive

Kemenperin Aims For Chery To Enhance Its Local Content Level To 60%

The Deputy Minister of Industry, Faisol Riza, expressed appreciation for PT Chery Motor Indonesia's commitment to achieving a Domestic Component Level (TKDN) of 40 percent in its vehicle production. He further encouraged the Chinese automotive industry to progressively enhance the TKDN. 

"Currently, Chery's TKDN stands at 40 percent. However, I am confident that in the future, Chery can elevate the TKDN to 60 percent," Faisol stated, as reported by the official website of the Ministry of Industry. 

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

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

During his visit to the PT HIM factory located in Pondok Ungu, Bekasi, Faisol had the opportunity to test the Chery J6 electric vehicle, which has already achieved a TKDN of 40 percent. He noted that the J6 brand, in particular, along with other models produced, has the potential to compete in the global market. 

"This demonstrates that Indonesia is capable of producing high-quality vehicles. The government fundamentally supports the automotive industry in its continuous improvement, both through regulations and incentives, including VAT and luxury goods tax incentives specifically for electric vehicles," he explained. 

Tag: Chery Faisol Riza Kemenperin