Wednesday, May 29, 2024

A big global electric motorcycle manufacturer to invest in Indonesia

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Gusty da Costa

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A big global electric motorcycle manufacturer from an Asian country has shown interest in investing in Indonesia, eyeing a manufacturing plant site in West Java’s Bekasi and Karawang regencies, an official with the Coordinating Ministry for Maritime Affairs and Investment said on Thursday.

Deputy for Investment and Mining Coordination at the Coordinating Ministry for Maritime Affairs and Investment, did not specifically mention the country of origin of the motorcycle manufacturer, but citing India or China as a possibility
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“The quality of their motorcycles have been proven,” Seto told the media on Thursday, February 29, 2024.

He said the company will invest hundreds of million dollar to set up factories in Karawang and Bekasi, West Java. The groundbreaking of the construction of the factories will be held in the second or third quarter of 2024.

Seto believed that the pressence of this new investment will encourage strong competition among the motorcycle manufacturers and make its manufacturing sector more competitive.

Deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Investment, Rachmat Kaimuddin, said there are many motorcycle manufacturers that are interested in investing in Indonesia, including those from China and India.

As for electric cars, Chinese manufacturers like BYD, NETA and Chery have entered the Indonesian market. ” There are also other manufacturers interested, but they have asked to remain anonymous,” Rachmat said.

As previously reported by cnbcindonesia.com, Rachmat said that motor vehicle market share in Indonesia is among the largest in Southeast Asia, especially for domestic sales. For cars, 1 million units are sold every year, while motorcycles are between 5 and 7 million units per year.

“There is a market for 129 million motorbikes and 23 million cars. This is such a very attractive market and the president has also said that there is a project, which will have an effect on approximately 10 percent of the population in 2030, that’s a calculation of 13 million motorbikes and 2 million cars in Indonesia,” said Rachmat.

“Currently we are probably still at the level of producing tens of thousands units, so we still have a long way to go, but the growth is very promising,” he added.

Gusty da Costa

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Editor

 

Interview

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