Investment Of IDR 5.2 Trillion, Chery Prepares New Factory And Dongkrak TKDN

Rows of Chery cars are marketed in Indonesia. (Photo: CSI)

JAKARTA PT Chery Sales Indonesia (CSI) has begun to open up little by little their commitment in the national automotive market. Without much fanfare, the Chinese car brand has actually poured fantastic investment funds to reach IDR 5.2 trillion to strengthen their foothold in Indonesia.

This large investment is believed to be the foundation for Chery's grand plan, such as building an independent factory in the country. Currently, all Chery models sold in Indonesia are still assembled in facilities owned by PT Handal Indonesia Motor (HIM) in Pondok Ungu, Bekasi. From there, the Chery product line is produced to be able to meet the requirements for the Domestic Component Level (TKDN) of at least 40 percent.

"Right now, maybe my friends also know that we have CKD, the scheme is that some of our units have at least reached 40 percent in terms of TKDN," said PT CSI Sales Director Budi Darmawan to reporters in Bogor, yesterday.

"And regarding government policies, we return them to the government, because at this time it has not been decided regarding policies for 2026. We support in essence," he added.

Furthermore, Chery ensured their commitment to continue to push the TKDN figure higher year after year. Budi considered this not only an industrial strategy, but also a direct contribution to the national economy.

"All of our products that have been assembled in Indonesia are at least 40 percent. Because there is no CBU, in Chery, all the CKD lines ups are. Of course, we will continue to increase the local content as high as possible," he explained.

"Because this will certainly have an impact on the Indonesian economy as well. We as automotive business players who in fact have a lot of series and multiplier effects. Of course, with this increase in TKDN, we can also support the Indonesian economy," continued Budi.

According to Budi, all efforts to increase TKDN are part of the IDR 5.2 trillion investment that Chery has prepared. However, he has not disclosed in detail how much the allocation of funds is focused specifically on developing local components.

"We are trying our best to continue to increase it. That is also one of our blueprints. We have an investment that maybe friends also know. We signed with Pak Agus in Shanghai yesterday. That is one of the initial plans to go there," concluded Budi.