Chinese Automaker to Build US$200mn Factory in Indonesia
4 March 2015 13:42 WIB
TEMPO.CO, Jakarta - The government said a Chinese automaker is planning to build an assembly plant in Indonesia with an investment worth of US$200 million. Ikmal Lukman, sector promotion director at the Investment Coordinating Board yesterday said the Chinese investor has met with the BKPM twice and even visited the site where the plant will be built on.
The investment compensates for the national automotive sector's loss of PT General Motors Indonesia, which will close its factory in Bekasi, West Java. GM decides to shut the factory at the end of June 2015 due to low sales.
Industry Minister Saleh Husin said that GM will work with two Chinese manufacturers SAIC Motor Corp. and Wuling Motors, to set up a joint venture company called SAIC-GM-Wuling. They will build a factory that manufactures, assembles, and market the Wuling car in Indonesia.
The new factory, Saleh said, will start operating in 2017, producing 150,000 cars per year. "Preparations have been done, including the plan to establish the factory near Jakarta," he said.
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