PT Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI) inaugurated a new factory worth Rp500 billion (US$30.7 million) in the Delta Silicon 8 Industrial Estate, Bekasi Regency, West Java. 

Founded in 2018, DCVMI is a subsidiary of Daimler Truck AG or Daimler Truck Holding AG, one of the largest commercial vehicle manufacturers in the world, with more than 35 main locations worldwide including Indonesia, with one of its famous brands Mercedes-Benz.

The 15-hectare (ha) factory is a symbol of Daimler's trust in the prospects of the Indonesian vehicle industry, with the construction of this factory being able to strengthen Indonesia as an automotive manufacturing hub in the Asian region.

"The construction of this factory signifies the confidence of global investors in the potential of the Indonesian automotive industry, especially in the commercial and environmentally friendly vehicle segments," Minister of Industry, Agus Gumiwang Kartasasmita, said on Tuesday, June 10, 2025.

He said this investment is in line with the government's commitment to encouraging industrial transformation towards low-emission vehicles. It is expected that through DCVMI, more environmentally friendly vehicle models can be developed, including Euro 5 and Euro 6 technology, as well as electric vehicles in the long term.

The factory has adopted Euro 4 technology using the Selective Catalytic Reduction (SCR) and Diesel Exhaust Fluid (DEF) systems, a measure that has received appreciation from the government through fiscal and non-fiscal incentives to encourage domestic green vehicle production.

"We are also preparing fiscal and non-fiscal incentives to encourage domestic green commercial vehicle production," Agus said.

Currently, vehicles produced by the DCVMI factory have an average TKDN of 28.08 percent. The government is pushing for this figure to continue to be increased to strengthen the local component industry while improving the commercial vehicle trade balance which is still in deficit.

Meanwhile, in the first quarter of 2025, Indonesia's commercial vehicle trade balance experienced a deficit of US$608.7 million, with exports only reaching US$75.7 million while imports reached US$648.2 million.

"Increasing TKDN will strengthen the competitiveness of the national industry and open up greater opportunities for participation in government projects," Agus said.

DCVMI targets production of up to 5,000 vehicles per year, making it one of the top five commercial vehicle manufacturers in Indonesia. Several production models have been specifically designed for the needs of the Indonesian market.

DCVMI President Director, Sankaranarayanan Ramamurthi, said that this factory is not only about production expansion, but also a contribution to the national economy.

"We are committed to expanding exports, strengthening the local supply chain and creating jobs," he said.