Government Rakes In Rp 56 Trillion from Chery to BYD Investments

KatadataOTO – Currently, many car manufacturers are selling their products in Indonesia. Starting from Chery, BYD to VinFast.

Their presence brings a positive impact to the country. Because all these producers are investing money in the country.

Especially after the government provided incentives for the automotive sector. The amount reached IDR 7 trillion over the last two years.

This stimulus proved to be quite tempting for BYD and others to invest. They are establishing production facilities in various locations.

Photo: KatadataOTO

"Chery is investing IDR 5.2 trillion. They will have two to three brands by 2030," said Airlangga Hartarto, Coordinating Minister for Economic Affairs at the Opening of the Kadin National Leadership Meeting, quoted from the Kadin Indonesia YouTube video.

Airlangga then explained that BYD has invested up to IDR 11.2 trillion.

The money is being used to build a factory in Subang. With a production capacity of up to 150 thousand units per year.

Meanwhile, Wuling also invested in Indonesia. The brand from China poured in IDR 9.3 trillion.

This was followed by the establishment of a battery factory. So they spent another IDR 7.5 trillion.

For your information, Wuling has a 60-hectare factory in Cikarang, West Java.

"VinFast from Vietnam has also invested IDR 3.7 trillion with a production capacity of 50 thousand units per year," Airlangga continued.

Hyundai, not wanting to be left behind, also invested money in Indonesia. The Korean manufacturer invested up to IDR 20 trillion.

The minister explained that if all were combined, the total investment from Chery to BYD reaches IDR 56.9 trillion.

Of course, the achievement above is considered positive. Because it can contribute to building the automotive industry.

Not to mention, it can absorb a lot of labor. Automatically, the number of unemployed people in the country will decrease.

Government Incentives Discontinued

As a reminder, the government will not continue assistance for the automotive industry in 2026.

Referring to the Minister of Investment Regulation Number 6/2023 in conjunction with Number 1/2024, the deadline for utilizing incentives and the electric car importation scheme ends on December 31, 2025.

Photo: KatadataOTO

Furthermore, based on the domestic component level (TKDN) roadmap, from January 1, 2026, to December 31, 2027, electric car manufacturers are required to fulfill their local production commitment with a one-to-one ratio.

They must produce units with technical specifications, including electric motor power and battery capacity that are at least equivalent or greater.

If they are unable to meet this local production provision, the government has the right to execute the bank guarantee.