Ministry Of Industry Demands SAIC Motor Make Indonesia An Electric Vehicle Production Base

Wuling Darion PHEV. (Photo: Indra/VOI)

JAKARTA - The Ministry of Industry (Kemenperin) continues to strengthen Indonesia's position as a center for electric vehicle production in the Southeast Asia region. One of these efforts was carried out through a meeting between the Secretary-General of the Ministry of Industry, Eko SA Cahyanto, who represented the Minister of Industry Agus Gumiwang Kartasasmita, with SAIC Motor Corp., Ltd. in Shanghai.

The meeting which took place on Thursday, October 9 was also attended by the CEOs of PT SGMW Motor Indonesia, Tang Wensheng, and Vice President SAIC Motor Corp., Ltd., Zang Qing, discussing strengthening the automotive industry cooperation between Indonesia and China. The focus is on developing environmentally friendly vehicles and expanding exports in the ASEAN market.

"The Indonesian government expresses its appreciation to SAIC Group for its contribution in supporting the development of the electric vehicle industry in Indonesia. We hope that this collaboration will continue by increasing the line of environmentally friendly vehicle products in accordance with the characteristics of Indonesian consumers," said Eko in his official statement in Jakarta, Friday, October 10.

SAIC Motor Corp., Ltd. is a state-owned Chinese automotive company (BUMN) based in Shanghai. This giant automaker oversees well-known brands such as Wuling, MG, Baojun, and Maxus, with business activities that include research, development, production, to sales of vehicles and their components.

This company has four world production bases, namely in Pakistan, India, Thailand and Indonesia. In Europe, SALIC sales reach three million units per year. Through PT SGMW Motor Indonesia, SAIC targets Indonesia to become a production center for countries with right wheels.

Until now, PT SGMW and MG have launched 19 models, with 13 of them being produced locally. Since 2015, PT SGMW has built a vehicle factory as well as a supplier park industrial area in Cikarang, which has also developed a local battery production facility for MAGIC Battery Wuling, which is an important part of the national electric vehicle ecosystem.

"We appreciate PT SGMW Motor Indonesia for producing electric commercial vehicles with a TKDN level of more than 40 percent. This shows a strong commitment in supporting government policies to accelerate the transition to the low emission automotive industry," continued Eko.

In the production process, PT SGMW collaborates with more than 77 local suppliers from tier 1 to tier 3. In the future, battery-based electric vehicles (BEVs) are targeted to have TKDNs of up to 80 percent. To achieve this target, PT SGMW has also built a BEV battery production facility with PT Gotion and CATL through PT Unified Advanced Battery System Indonesia (PT UABS).

By 2025, SGMW exports are targeted to exceed 11 percent of total production, with shipments to 15 countries and total exports approaching 10,000 units. In addition to pure electric vehicles (BEVs), the company is also preparing ICE, HEV, and PHEV lines, as well as bringing in new SUV-Cs with faster fuel and acceleration efficiency.

Until 2025, the company will operate more than 170 sales outlets and full-sales services in Indonesia for the Wuling, MG, and Maxus brands. In fact, SAIC is preparing a double brand showroom in Jakarta as part of a regional expansion strategy.

During the meeting, SAIC Motor asked for support from the Indonesian government regarding the sustainability of VAT DTP incentives for electric vehicles (BEV), both passenger vehicles and buses. They also proposed expanding incentives to electric commercial vehicles, including Wuling MitraEV, as well as HEV, PHEV, and REEV products to enter the Low Carbon Emission Vehicle (LCEV) category.

"For the proposed sustainability of PPNDTP incentives and the addition of the PPNDTP incentive scope for commercial vehicles, it is currently under internal government discussion," he said.

"The Ministry of Industry also encourages PT SGMW to increase the number of vehicle variants according to Indonesia's market tastes and increase investment in order to increase the value of TKDN. Where, hopes that SAIC can provide more information regarding the next investment plan in Indonesia, especially those related to the development of electrification platforms and new technology," said Eko.

"Indonesia has a strong commitment to becoming a major player in the global EV supply chain, and we see SAIC as an important partner in realizing that vision," he continued.