Mazda Ready To Operate New Factory In West Java In 2026, Investment Reaches IDR 400 Billion

JAKARTA A car manufacturer from Japan, Mazda, is preparing to strengthen its presence in Indonesia. PT Eurokars Motor Indonesia (EMI) as Mazda's official distributor announced that their new assembly plant in West Java will officially operate in 2026.

"Later, after the turn of 2025, we will definitely invite back for the inauguration of our factory in West Java," said Chief Operating Officer of PT Eurokars Motor Indonesia, Ricky Thio in Central Jakarta, Monday, October 6.

The assembly facility is said to have cost an investment of around Rp400 billion, if you look at the official Gaikindo website. Even so, Ricky has not disclosed in detail the exact location of the new factory.

"Next year will definitely be inaugurated, just wait a little more," he added.

Mazda's move is also a signal of his party's readiness to face the era of electrification in Indonesia. Currently, Mazda already has a CX-80 Plug-in Hybrid Electric Vehicle (PHEV) and Mazda MX-30 which is a battery-based electric car (BEV).

If the two models are later assembled locally, Mazda has the opportunity to obtain tax incentives from the government, referring to the Minister of Finance Regulation (PMK) Number 12 of 2025. In this regulation, hybrid vehicles get a 3 percent DTP PPnBM discount from the selling price, while CKD electric cars with TKDN are at least 40 percent entitled to 10 percent VAT DTP incentives.

Ricky also revealed that the first model to be produced at the new factory is the compact SUV, one of the most popular segments in the Indonesian automotive market.

The presence of this factory is expected to increase Mazda's competitiveness, as well as reduce import costs which have been a major challenge. With local assembly, Mazda also has the potential to expand its distribution network and strengthen national sales.

Based on data from the Association of Indonesian Automotive Industries (Gaikindo), Mazda's wholesale sales throughout January 2025 reached 1,994 units, while retail sales were recorded at 2,091 units in the same period.

But in general, the national automotive market still shows a slowing trend. In the first eight months of 2025, the total sales of wholesales cars in Indonesia were only 500,951 units, down 10.6 percent year-on-year (yoy) compared to 2024 which reached 560,552 units. Meanwhile, retail sales also decreased by 10.7 percent to 522,162 units, from the previous 584,847 units in the same period last year.