Update on Ford's Plan to Build a Factory in Indonesia

KatadataOTO – Ford offers the Ranger, Everest, and New Ranger XL for Indonesian consumers. Both models are still fully imported from Thailand.

Previously, Gaikindo (Association of Indonesian Automotive Industries) had encouraged the American manufacturer to build a factory in the country.

Moreover, the Ministry of Industry (Kemenperin) had also mentioned the high number of double cabin vehicle imports from the neighboring country.

Unfortunately, to date, PT RMA Indonesia, as the official distributor of Ford in Indonesia, is still reluctant to speak further about the plan.

Photo : KatadataOTO

“RMA Indonesia and Ford are committed to continuing to grow in line with the development of the automotive industry,” said Toto Suharto, Country Manager of RMA Indonesia in South Jakarta recently.

He emphasized that his party will continue to look for solutions and opportunities to develop its product line domestically.

“For now, it cannot be disclosed (the timeline for the factory construction),” he asserted.

On the other hand, Gaikindo revealed that discussions with Ford regarding the factory plan had taken place. 

“It was a long time ago, we talked before Covid-19,” said Kukuh Kumara, General Secretary of Gaikindo, when met on the same occasion.

Minister of Industry Highlights High Imports of Double Cabins

According to the Ministry of Industry, as of March 2024, the number of double cabin imports reached an average of 25,000 units per year.

“What's strange, according to notes from the Ministry of Industry, is that principals make Thailand a production base for Double Cabin vehicles, with one of the reasons being higher demand in Thailand. On this occasion, I want to invite the principals to re-evaluate this thinking,” said Agus Gumiwang, Minister of Industry of the Republic of Indonesia, some time ago.

Meanwhile, in January 2024, Thailand was experiencing an economic crisis. Car sales in the land of the white elephant were reported to have fallen for eight consecutive months.

Photo : KatadataOTO

“The data says our MVA (Manufacturing Value Added) is above Turkey, Canada, Brazil, Spain, and most importantly, above Thailand,” said the Minister of Industry.

MVA itself is the added value of the manufacturing industry per country, an accumulation of the difference between the price of goods and production goods.

In 2021, Indonesia's contribution to the global MVA was 1.46 percent, placing it in the top ten.