Government Asks Geely to Build Factory After Returning to Indonesia

KatadataOTO – After leaving Indonesia for a while, Geely has now finally returned. They immediately brought in an electric car, the EX5.

The decision above was met with a fairly positive reception from some parties, including a response from the Indonesian government.

They hope Geely will invest its money in the country, not just rely on contract manufacturing.

“Of course, we are encouraging them to open a factory, because this will certainly reassure consumers,” said Cahyo Purnomo, Director of Promotion for East Asia, South Asia, the Middle East, and Africa at the Ministry of Investment and BKPM during the Geely EX5 launch event in Jakarta some time ago.

Photo : KatadataOTO

Cahyo believes that if Geely builds a production facility in the country, it will provide various benefits for their EV (Electric Vehicle) users.

For instance, when consumers experience problems or damage. The required spare parts can be sent immediately

So there's no need to wait long because they have to be shipped from abroad first. This way, it is believed that consumers will feel comfortable using Geely electric cars.

However, Cahyo did not provide a target for when Geely must build its own factory. He just wants the aforementioned step to be realized as soon as possible.

Considering this will be related to the electric car incentives provided by President Prabowo Subianto in 2025. Such as tax cuts to import duty exemptions.

“We can provide those incentives to Geely as long as they meet the requirements. If we look at a company like BYD, they promised their factory will be completed by the end of December,” continued Cahyo.

Looking at BYD's case, Cahyo hopes Geely will follow the example of their compatriot from mainland China.

“As a newcomer, if Geely applies for incentives, it can be adjusted according to their plans. We hope the sooner the factory is built, the better,” Cahyo emphasized.

For your information, Geely has collaborated with PT HIM (Handal Indonesia Motor). Later, the EX5 electric car will be produced in Pondok Ungu, Bekasi, West Jakarta.

Photo : Courtesy

However, the assembly process will only begin in the second quarter. Therefore, in the beginning, they will still be importing the Geely EX5 with CBU (Completely Built Up) status from China.

The collaboration with Handal is believed to be Geely's effort to maintain its existence in the country and to support the development of the domestic automotive industry.

For your information, in their collaboration, Geely will provide an independent research and development space. This is to fulfill the commitment of bringing the latest features.