Pindad Prepares National Car Factory In Subang With Production Of 500 Thousand Units Per Year

The production car is PT Pindad. (Photo: Pindad)

JAKARTA - The big plan to bring national cars back has a real boost. The government has placed PT Pindad at the forefront as the manager of this strategic project and will prepare factory land in Subang, West Java.

This important step was realized through the signing of a Memorandum of Understanding (MoU) between the Ministry of National Development Planning/Bappenas, the Industrial Estate Association (HKI), and PT Pindad. This agreement became the foundation for policy alignment to strengthen the planning of priority industrial areas in the 2025-2029 RPJMN as well as accelerate the National Car Program as a National Strategic Project (PSN).

Minister of National Development Planning/Head of Bappenas Rachmat Pambudy emphasized that Indonesia is entering a new phase in a long journey to realize the independence of the automotive industry. He highlighted the importance of building industrial estates, supply chains, and integrated technology development.

This is a new history to continue the unfinished milestone. Making cars can, making car factories can, but making the national car industry not necessarily possible. Without any area, the development of the national car industry will not work," said Rachmat Pambudy, quoted from the official Bappenas website, quoted Wednesday, December 10.

The MoU between Bappenas, HKI, and Pindad is expected to be the foundation for the development of environmentally friendly industrial estates, strengthening the domestic automotive supply chain, to mastering modern manufacturing technology.

"This collaboration is expected to open up opportunities for Indonesia to achieve the independence of the automotive industry to become a world-class industry," Rachmat continued.

Meanwhile, PT Pindad as a key player emphasized its commitment that the national car project must run concretely. President Director of PT Pindad Sigit P. Santosa, revealed that his party has prepared industrial land in Subang and is targeting production capacity of up to 500,000 units per year, with an initial stage of 100,000 units in 2028.

"The same message from all commissions to Pindad, is not to lose the euphoria. National car development cannot be just a program, we must pilot for technological innovation and build the ecosystem," said Sigit.

"PT Pindad is committed to increasing the capacity of research and development to strengthen the production capabilities and national supply chains, as well as producing every stage the national car construction runs in accordance with the government's directives and long-term decisions. This opportunity is certainly a forum for our academics to be involved in the field of automotive product development from upstream to downstream, starting from the development of concept designs, then development, mass production, to after sales. Hopefully today's series of agendas will be a new milestone for the nation and bring real benefits to the people of Indonesia," continued Sigit on the official Pindad website.

Until now, it is not clear for the national car model and type to be presented. However, Coordinating Minister for Economic Affairs Airlangga Hartarto, said that the car would be sold for under Rp. 300 million.

"So in the future we will push for a national car, we have checked in the field from Gaikindo, now it is the largest market, the largest share is cars under Rp. 300 million, so this is also what the government encourages so that affordability becomes a challenge," said Airlangga.

At the GIIAS 2025 event, an Indiginous Indonesia Car, or i2C Project was exhibited. The I2C Project electric SUV is claimed to have been made by the nation's children, and poured elements of Indonesia into its car, such as the moment of independence in 1945, to the garuda bird.

The concept's electric SUV has a length dimension of 4,910 millimeters, a width of 1,848 mm, a height of 1,690 mm, and a distance of the front wheel axis to the back of 2,965 mm. While the powertrain relies on an NMC battery with a capacity of 83.4 kWh which is claimed to be able to run 617 kilometers based on CLTC (China Light-Duty Vehicle Test Cycle) testing.