Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita and four electric vehicle (EV) companies from China, namely Neta, Wuling, Chery, and Sokon, agreed to make Indonesia a production hub for environment-friendly vehicles for projected exports.

"The company has also agreed to make Indonesia a production base hub for right-hand drive EVs to be exported to 54 countries that use right-hand drive cars," Kartasasmita noted in his statement from the Ministry of Industry in Jakarta, Friday.

"The Indonesian government has set a production target for electric vehicles in 2030 of 600 thousand units," he highlighted.

The agreement to make Indonesia an export production hub was conveyed by EV entrepreneurs during the minister's working visit to Beijing, China, on June 12-13, 2024.

Kartasasmita explained that the EV company Neta, through PT Neta Auto Manufacturing Indonesia, plans to increase the Domestic Component Level (TKDN) by up to 60 percent by 2025, with a sales target of 10 thousand units per year.

Meanwhile, SAIC GM Wuling Automobile Company is expected to increase the quantity of exports of electric cars made in Indonesia so that it can make the EV industry in Indonesia a production base in ASEAN and the world.

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"The Indonesian government hopes that Wuling can explore increasing the export market, especially for EV products, to further emphasize Indonesia's target as a base for EV products in ASEAN and the world," he remarked.

Furthermore, at a meeting with Chery Automobile, the company plans to conduct research into the production of plug-in hybrid electric vehicle (PHEV) cars in Indonesia since their sales are more popular in China, as burning fuel in such cars is more economical than that for hybrid electric vehicle or HEV cars.

Furthermore, the company expressed its commitment to producing EV vehicles, with a total of 100 thousand units by 2030.

The minister further highlighted that Sokon company, through SOKONINDO, is expected to be able to develop EV.

They are expected to support the EV ecosystem by bringing various new models of EV to Indonesia, considering that the manufacturer from China has a production capacity of up to 50 thousand units.

He also remarked that the four manufacturing companies from China can make the most of the incentives provided by the Indonesian government to invest.

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Translator: Ahmad Muzdaffar Fauzan, Cindy Frishanti Octavia
Editor: Yuni Arisandy Sinaga
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