Mitsubishi Invests IDR 5.7 Trillion, Minister Of Industry: Also Andil Develops The Indonesian Automotive Industry

Minister of Industry Agus Gumiwang Kartasasmita (right) and President & CEO of Mitsubishi Motor Corporation (MC) Takao Kato (left). Photo: Doc. Ministry of Industry

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that Japanese automotive manufacturer Mitsubishi Motor Corporation (MC) will increase investment in Indonesia by IDR 5.7 trillion. This is done to increase its production capacity to 250,000 units by 2024.

Minister of Industry Agus said, throughout 2023, MMC targets the realization of its investment in Indonesia of up to IDR 12.3 trillion.

"We really appreciate Mitsubishi for being committed to playing a role in developing the competitive automotive industry ecosystem in Indonesia. Moreover, Mitsubishi is also focused on making Indonesia part of its production base," said Minister Agus in a press release, Thursday, August 10.

He added that the MMC is preparing the production of an electric car type Battery Electric Vehicle (BEV) at its production facility located in Deltamas City, Bekasi, West Java. The production of the electric car will begin in December 2023.

Agus revealed that the government is determined to create a conducive investment climate for industry players, including the automotive sector.

"Previously, CBU imports had import duties and VAT, which was planned to be zeroed. This facility was given to investors who want to build factories in Indonesia to produce electric vehicles," said Agus.

"We are optimistic that if implemented it can spur investment as well as increase interest in the use of electric vehicles in the country," he added.

According to Agus, MMC can take advantage of these fiscal facilities, which are believed to benefit companies to introduce their new products in the electric vehicle segment.

"Currently, the formula for incentives is being discussed by the government. There are two approaches, namely the number of CBU imports will be adjusted to the investment value, and the second is production-based," he said.

In addition, Agus said, based on the report he received, the initial product of electric vehicles to be produced and marketed in Indonesia was the Minicab-MiEV electric trading vehicle.

"The company has piloted projects with four companies, namely PT Pos Indonesia, PT Malinora Power, Gojek, and DHL Supply Chain Indonesia to use Mitsubishi Mini Cab MiEV vehicles commercially," he explained.

Meanwhile, MMC President & CEO Takao Kato said, Indonesia is a large market share for Mitsubishi. In fact, compared to the Japanese market itself, Mitsubishi's sales in the country are bigger.

"Mitsubishi diversifies its products by issuing Hybrid Electric Vehicle (HEV) or Plug-in Hybrid Electric Vehicle (PHEV) vehicles, as well as Battery Electric Vehicle (BEV) to support the Indonesian government's program to achieve carbon neutral in 2060," he said.

He said Mitsubishi would focus on producing the xEV type car model. In fact, Mitsubishi does not only plan to produce vehicles for the domestic market, but is also an export destination.

The total production of Mitsubishi in Indonesia will reach 176,000 units by 2023, and is targeted to be 231,000 units by 2024. In addition, its export is targeted to reach 98 thousand units by 2024.

"We have restarted the production of the L300 model pickup type since April 2023, then we will export Pajero Sport to Australia in December 2023, and are ready to launch a new SUV model that will be carried out at GIIAS 2023," he concluded.