Ministry Of Industry Pockets Investment Commitment Of IDR 5.25 Trillion From Chery

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita announced a new investment commitment of IDR 5.25 trillion from the automotive manufacturer from China, Chery, to strengthen the battery-based automotive industry in Indonesia.

Agus said the investment commitment was a strategic step in accelerating the development of low-emission vehicles and expanding the national automotive production base.

"This investment commitment shows Chery's seriousness in strengthening the national automotive industry, especially in low-emission and electricity-based vehicles. The government will continue to encourage the acceleration of investment realization," Agus said in his official statement, quoted Wednesday, October 15.

He appreciated Chery's contribution to supporting the government's Low Carbon Emission Vehicle (LCEV) program. Chery is known to have developed three types of vehicle technology, namely Full Hybrid, Plug-in Hybrid and Electric Vehicle (EV).

Chery's investment in Indonesia began in 2024 and will continue until 2030. The cumulative value of the investment reached more than IDR 5.2 trillion, including the development of production facilities through partnerships and independent factory development.

The former Minister of Social Affairs asked Chery to immediately draw up a business plan for the next five years, especially regarding increasing production capacity and export strategies.

"We hope that Indonesia can become the basis for the production and export of Chery electric vehicles for the ASEAN region," he said.

Previously, the government would not continue providing incentives for electric cars completely built up (CBU).

"This year, God willing, we will no longer issue a CBU permit in the context of an investment scheme by benefiting," said Minister of Industry Agus at a press conference in Jakarta, Thursday, September 11.

The incentive ends in December 2025. The incentives given by the government are in the form of exemption from import duties and PPnBM.

To note, there are six automotive companies that have entered the CBU import incentive program. Among others, BYD Auto Indonesia; Vinfast Automobile Indonesia; Geely Motor Indonesia; Automotive Industry Era (Xpeng); National Assemblers (Aion, Citroen, Maxus and VW); and Inchape Indomobil Energi Baru (GWM Ora).

The electric car manufacturers that still rely on CBU imports only have until December 31, 2025 to enjoy incentives in the form of exemption from Import Duty and PPnBM.

After that period, the official import incentive scheme ends and producers are required to switch to local production according to the TKDN roadmap.