Pindad to Build Factory in Subang for National Car Production

KatadataOTO – The government continues to increase its focus on the development of national cars. As is being done by PT Pindad.

Recently, they, along with the Indonesian Industrial Estate Association (HKI) and the Ministry of National Development Planning/Head of the National Development Planning Agency (PPN/Bappenas), reached an agreement.

In the Memorandum of Understanding (MoU), it was explained that they plan to strengthen the priority industrial estates of the 2025–2029 National Medium-Term Development Plan (RPJMN).

In addition, it also accelerates the national car program as a National Strategic Project (PSN). So this plan can be realized by the government soon.

Photo: Instagram/PT_Pindad

“This MoU is the first step in aligning policies and developing an integrated industrial ecosystem,” said Rachmat Pambudy, Minister of PPN/Bappenas, as quoted by Antara on Tuesday (09/12).

Rachmat explained that the Memorandum of Understanding is considered the first step to developing environmentally friendly industrial estates.

Furthermore, it also aims to establish a domestic automotive supply chain and then develop advanced manufacturing technology.

The aide to President Prabowo Subianto stated that this cooperation is a new history to continue unfinished milestones.

Indonesia is said to be capable of making four-wheeled vehicles along with production facilities, but has not yet created a national car industry.

“Without an estate, the development of a good national car industry must also build its supply chain ecosystem, and this needs to be in an industrial estate,” Rachmat continued.

Meanwhile, Sigit P. Santosa, President Director of PT Pindad, said that the national car project should not stop at being just a slogan.

Pindad is said to have prepared industrial land in Subang, West Java, to produce the national car.

They are also targeting a production capacity of 500 thousand units per year. Starting with 100 thousand units in 2028 as the initial phase.

“The development of a national car cannot be just a program; we must conduct piloting for technological innovation and build its ecosystem,” said Sigit.

National Car Price Will Be Competitive

On the other hand, the government recently revealed the price tag for the four-wheeled vehicle made by the nation's children.

Photo: KatadataOTO

“So, moving forward, we are pushing for a national car. We have checked in the field with Gaikindo, and indeed, the largest market share now is for cars under Rp 300 million,” said Airlangga Hartarto, Coordinating Minister for Economic Affairs, on a separate occasion.

Indeed, a price tag like the one above is still quite popular with the public, as it is considered suitable for the pockets of middle-class consumers.

Moreover, in that price range, many products can be purchased, such as the Toyota Veloz Hybrid, Daihatsu Xenia, and Ertiga.