PT Chery Sales Indonesia (CSI), Chery’s crane holder agent (APM) in Indonesia, signed a statement of intent or letter of Intent (LoI) with the Directorate General of Metal, Machinery, Transportation Equipment and Electronics Industry (Ditjen ILMATE), The Ministry of Industry of the Republic of Indonesia (Kemenperin) as the production center and export center for the development of environmentally friendly vehicles.
The signing of this LoI was carried out by Qu Jizong, Executive Vice President of PT Chery Sales Indonesia and Hendro Martono, Director of Maritime Industry, Transportation Equipment and Defense Equipment (IMATAP representing the Directorate General of ILMATE of the Ministry of Industry).
It is stated in this LoI that CSI and the Ministry of Industry will jointly implement a commitment to support the acceleration of the formation of the Battery-Based Electric Motor Vehicle (KBLBB) ecosystem.
“In one year of presence in Indonesia, we are increasingly confident that Chery can continue to grow together with the Indonesian government, partners and consumers. Therefore, we will carry out our commitment to invest through the production of electric vehicles in Indonesia and distribution to driving countries right,” said Qu Jizong, Executive Vice President, PT Chery Sales Indonesia, Tuesday (28/11/2023).
In particular, CSI stated its commitment to make the best and maximum efforts in implementing the KBLBB industrial development project in Indonesia, one of which is by complying with regulations regarding the value of the Domestic Component Level (TKDN) which must be fulfilled according to government regulations.
CSI is also committed to conducting research and development, technology improvements, and skills development programs in order to improve manufacturing capabilities to meet, and even exceed, industry standards in terms of quality and safety.
All of this commitment is to realize Chery’s plans in Indonesia as a production center and export center for the development of environmentally friendly vehicles and will gradually introduce various other environmentally friendly vehicle variants to support the government’s efforts to create cleaner, environmentally friendly air and provide real contribution to reducing emissions.
In the document, the government states that it will provide support and assistance to CSI to carry out KLBB production in Indonesia so that it can run according to the requirements set to fulfill TKDN.
Apart from that, support will also be provided by the government to increase production capacity in a sustainable manner and empower small and medium industrial components as part of the global supply chain, as well as realizing increased exports of domestically produced KBLBB.