Chery's Independent Factory Development Plan Remains Uncertain

KatadataOTO – Car manufacturers are racing to establish a factory in Indonesia. As done by BYD and MG.

In fact, the process of establishing production facilities for both manufacturers has been underway for some time.

However, a different step was taken by Chery Sales Indonesia (CSI). Until now, the plan to build a factory in the country has not found a clear path.

"There is definitely a plan, but this plan is still being processed," said Rifkie Setiawan, Head of Brand & Marketing CSI at GIIAS 2025.

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Rifkie explained that Yin Tong Yue, Founder of Chery, has visited Indonesia twice.

According to him, this is a symbol of the Chinese brand's seriousness in producing electric and conventional cars in the country.

Even so, Rifkie did not dare to say for sure when the process of establishing the Chery factory would begin.

"It seems it won't be long, because we continue to grow. Our target has also started at two thousand units per month, and soon we will be at three thousand units per month," continued Rifkie.

For your information, Chery assembles its cars through a third party, namely Handal Indonesia Motor (HIM).

Chery considers the production capacity at the HIM factory to be still sufficient to meet market demand in Indonesia.

Therefore, the development of Chery's factory in the country is awaiting a study conducted by the headquarters.

Ministry of Industry Has Asked Chery to Build a Factory

As a reminder, the Ministry of Industry (Kemenperin) has urged Chery to build its own production facility.

"With an independent factory, Chery will not only be able to increase production capacity and expand its export market outside of ASEAN, but also create new jobs in Indonesia and boost national economic growth,” said Faisol Riza, Deputy Minister of Industry, in an official statement.

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He emphasized that a number of models already produced by Chery have a great opportunity to compete in the global market, including the J6.

"In principle, the government encourages the automotive industry to continue to improve through both regulations and incentives," Faisol affirmed.

According to circulating rumors, Chery intends to establish a factory in Indonesia by the end of 2025. So, it remains to be seen how serious this car manufacturer is.