BAIC Group Collaborates With PT Handal Indonesia Motor, Ready To Produce Vehicles In Indonesia

Collaborate with PT Handal Indonesia Motor. (Photo: BAIC)

JAKARTA - BAIC Group has entered the Indonesian market and shows its commitment to investing in the Indonesian automotive industry through PT JHL International Automotive.

The company appointed PT Handal Indonesia Motor as a local partner for assembly, which is planned to start in the first quarter of 2025.

"In choosing partners, we have taken thorough steps to ensure that our product quality is always maintained. We are proud to announce that with high flight hours and positive track records, we agree with PT Handal Indonesia Motor as BAIC Indonesia's assembly partner," said PT JDI Chief Operating Officer, Dhani M Yahya, at GIIAS, Wednesday, July 17.

PT Handal Handal Indonesia Motor, with more than 35 years of experience in the automotive industry, has proven successful and is believed to have assembled and produced four-wheeled vehicles with the quality recognized by various countries. Certified and won many prestigious awards, PT HIM is a very qualified partner for BAIC Indonesia.

Located in the new PT HIM facility located in Purwakarta, BAIC Indonesia will occupy one production line that is targeted to produce 1,680 BAIC BJ40 Plus units by 2025. This production will be followed by BJ30 and X55 II models in the second and third years, as well as the production of battery-based electric vehicles (BEV) in the following year. In the first five years, BAIC Indonesia targets production to reach 12,000 units per year.

In the early stages, PT JIO will assemble vehicles in the form of Semi Knock-Down (SKD), where manufacturing will receive semi-finished vehicles from BAIC factories in China to be assembled into intact vehicles. In the long term, PT JIO plans to assemble BAIC vehicles in Full CKD (Completely Knocked Down) by using quality materials from within the country to comply with Domestic Component Level (TKDN) regulations. In addition to the Indonesian market, PT JIO also plans to expand exports to the ASEAN automotive market.

With optimism for the progress of the automotive industry in Indonesia and seeing opportunities up to the ASEAN market, in the next five years, PT JIO plans to build a special factory facility for BAIC vehicles covering an area of 40 hectares with a total investment of more than 1 trillion rupiah. This plan opens up opportunities for these facilities to become general assembly partners for other brands in Indonesia and even ASEAN.