Four Chinese car companies help Indonesia become an eco-friendly car export production center

The Minister of Industry along with four electric car companies from China namely Neta, Wuling, Chery and Sokon plan to make Indonesia an export-oriented production center for environmentally friendly cars.The government has set a target of producing 600,000 electric vehicles by 2030, and the four companies have also agreed to make Indonesia a hub for a right-hand drive electric vehicle production base, with plans to export cars to 54 countries.During the working visit of the Minister of Industry to Beijing, China on June 12-13, the electric vehicle entrepreneur conveyed the agreement to make Indonesia an export production center. Electric car company Neta, through PT Neta Auto Manufacturing Indonesia, plans to increase its domestic component level (TKDN) to 60% by 2025, with a sales target of 10,000 units per year. Meanwhile, SAIC-GM-Wuling Motors is expected to increase the number of Indonesian-made electric vehicles exported, thus making the country's electric vehicle industry a production base for ASEAN and the world.

The government wants Wuling to explore growth in the export market, especially for electric vehicle products, to further emphasize Indonesia's goal of being a base for electric vehicle products in ASEAN and the world. In addition in a meeting with Chery Automobile, the company plans to conduct a study on the production of Plug-in Hybrid Electric Vehicles (PHEVs) in Indonesia due to the fact that the sales of PHEVs are more popular in China because PHEVs are more economical in fuel combustion than hybrid EVs/HEVs. Additionally the company has pledged to produce a total of 100,000 electric vehicles by 2030. The Minister of Industry said that Sokon, through SOKONINDO, is expected to develop EVs and support the EV ecosystem by bringing various new models of EVs to Indonesia, considering the production capacity of Chinese manufacturers is up to 50,000 units. Four manufacturing companies from China can utilize the incentives provided by the government to invest.