Invest 120 Million US Dollars, Sunra Officially Builds The Largest Electric Motorcycle Factory

Photo: Special

JAKARTA - Minister of Industry Agus Gumiwang Kartasasmita, represented by the Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Indonesian Ministry of Industry, Dr. Ir. Taufik Bawazier, M. Si, laid the first stone at the inauguration of the construction of the PT Sunra Asia Pacific Hi-Tech (Sunra Indonesia) electric motorcycle factory, in the Kendal Industrial Estate, Central Java, on Friday 3 May.

The laying of the first stone for the Sunra Indonesia factory was also attended by the Head of the Investment and One Stop Service Agency of Central Java Province, Ir. Sakina Rosellasari MSMSc and Assistant for the Economy and Development of the Regional Secretary of Central Java Province, Dr. AP Ir Sujarwanto Dwiatmoko M. Si.

The start of the construction of the Sunra Indonesia factory with a total investment plan of 120 million US dollars as well as marking an increasingly conducive domestic investment climate, especially in the electric vehicle industry, especially two-wheeled vehicles.

Sunra Indonesia has officially invested in the Indonesian market since 2023 with the largest investment scale in the two-wheeled electric vehicle industry.

"The construction of the Sunra factory in Indonesia is important to ensure product quality and provide better selling and selling services," said Zhang Chongshun, Chairman of Sunra Group.

On the same occasion, Taufik Bawazier said, in order to fulfill the commitment of the Indonesian government to reduce greenhouse gas emissions by 11.89 percent with its own efforts of up to 43.20 percent with international assistance by 2030, the government is currently focusing on implementing an acceleration program to improve the motor vehicle electrification ecosystem.

Several issues related to climate change and increasing trends in the use of new and renewable energy have become a catalyst for the transformation of the motor vehicle industry in Indonesia. Regarding this transformation, the Government has issued Presidential Regulation Number 79 of 2023 concerning Amendments to Presidential Regulation Number 55 of 2019 concerning the Acceleration of the Battery-Based Electric Vehicle Program (KBLB-Battery Electric Vehicle) for Road Transportation.

In line with Presidential Regulation 79 of 2023, the Ministry of Industry has issued two Regulations of the Minister of Industry, namely Permenperin Number 28 of 2023 concerning Amendments to Permenperin Number 6 of 2022 concerning Specifications, Roadmap for Development and Provisions for Calculation of Domestic Component Level Values (TKDN) of KBLB. And Permenperin Number 29 of 2023 concerning Battery-Based Electric Motor Vehicles in Complete Decomposition and Incomplete Decomposition of Conditions.

The issuance of these regulations is expected to attract more investment as well as accelerate the KBLBB creation market in Indonesia.

Responding to this, Zhang added that the construction of the Sunra factory is also a form of Sunra Indonesia's commitment and support for the idea of the Indonesian government to realize environmentally friendly and carbon-low strategies.

"We hope to make a significant contribution to the government's program and accelerate the formation of an electric vehicle ecosystem in Indonesia," Zhang explained.

The Sunra Indonesia factory, which was built on an area of 12.7 hectares, is planned to be completed in two stages, with a construction period of 18 months, then the factory is ready to operate by 2025.

The factory is designed to meet the basic annual production capacity of 1 million two-wheeled electric vehicles after fully operational later. Four main processes for the production of electric motorcycles will be carried out at this factory, starting from the making of frames, welding, painting and final assembly. It will also be equipped with a battery PACK repair shop and workshop.

Construction of the factory construction in the first phase reached 100,000 square meters. After the entire factory construction is completed, Sunra Indonesia will actively integrate supply chain resources, create supply chain ecology, and allow more supporting producers to localize in Indonesia.

The construction of this factory will not only increase domestic investment, increase the supply of environmentally friendly vehicles, but will also open up new opportunities for the creation of jobs, especially for the surrounding community. It is estimated that the factory can absorb 1,500 local workers.