Tuesday, 30 May 2023 09:51

Global Automotive Manufacturers Set to Expand Production Facilities in Indonesia

Several global automotive companies have expressed their plans to invest in Indonesia by building new factories or expanding existing ones. PT Kreta Indo Artha (KIA), the official agent of KIA in Indonesia, is among these companies and intends to establish a car manufacturing plant in the country. While the specific details regarding the location, investment requirements, and models to be produced have not been disclosed, KIA is currently in the process of finalizing its plans. As part of the Indomobil Group, KIA currently imports cars from India and Korea for the Indonesian market.

In addition, PT Astra Daihatsu Motor (ADM) has begun the construction of the Karawang Assembly Plant (KAP) 2 in West Java. This expansion, adopting an evolution, simple, slim, compact (E-SSC) concept, involves an investment of IDR 2.9 trillion and aims to achieve a production capacity of 140,000 units per year. ADM targets the commencement of operations for the new plant in early 2025, replacing the existing plant in Sunter, Jakarta, and building upon the previously established Karawang Assembly Plant (KAP) Line 1.

Toyota Motor Co also continues its investments in Indonesia, with a significant portion focused on the development of the domestic automotive industry. With multiple production plants in the country, Toyota has made substantial investments in equipment, tooling, supply chains, and human resources. Furthermore, Morris Garage (MG), a British automaker, has expressed its interest in building a factory in Indonesia to cater to the growing demand for four-wheeled vehicles and the ongoing era of electrification.

Source:
https://amp.kontan.co.id/news/produsen-otomotif-global-ancang-ancang-ekspansi-pabrik-di-indonesia

 

 

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