SAIC Urges Ministry of Industry to Extend Electric Vehicle VAT Incentive
11 October 2025, 09:00 WIB
The Vice Minister of Industry hinted at Suzuki's involvement in national car manufacturing, citing the company's capable factory capacity.
KatadataOTO – PT SIS (Suzuki Indomobil Sales) has just launched the Fronx, a coupe-style SUV (Sport Utility Vehicle) for Indonesian consumers.
Already produced domestically, the Ministry of Industry revealed that the Local Content Level (TKDN) of the Fronx is around 60 percent.
In response, the Ministry of Industry mentioned that Suzuki should participate in supporting the government's intention to create a national car.
Suzuki is considered to have the capable capacity to produce various types of vehicles domestically.
“I think PT Suzuki Indomobil Motor can participate in supporting the President's program to prepare an Indonesian car,” said Faisol Riza, Deputy Minister of Industry, on the sidelines of the Fronx launch on Wednesday (28/05).
He emphasized that the high percentage of Local Content Level (TKDN) in the Suzuki Fronx is a source of pride for Indonesia.
Therefore, it is hoped that in the future, Suzuki can be involved in designing and developing a national car, in line with President Prabowo Subianto's expectations.
“Basically, with a 60 percent Local Content Level, you could say the Fronx is already produced in Indonesia,” he said.
For your information, a Suzuki representative confirmed that the Fronx is locally assembled at the Cikarang facility and involves around 200 domestic companies.
This includes raw material suppliers to a range of other supporting activities.
Various vehicle components such as the engine, body, and car seats for the Ertiga, XL7, and Fronx are produced at the Suzuki factory in Cikarang.
The Suzuki Fronx completes the new line of hybrid technology SUVs in Indonesia, with a price range starting from Rp 200 million to Rp 300 million.
The Fronx SGX and GX types are equipped with SHVS (Smart Hybrid Vehicle System by Suzuki) combined with a 1,500 cc capacity engine.
There is a high chance the product will also be registered as a candidate to receive hybrid car incentives from the government, in the form of a tax cut of up to three percent.
The Fronx is also equipped with various safety features including the ADAS (Advanced Driver Assistance System), such as Adaptive Cruise Control and Lane Keep Assist.
The newest model from Suzuki will also be exported to various countries in the future. However, it has not been specified which countries are the destinations.
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