Daimler opens new bus, truck factory in Cikarang
Industry Minister Agus Gumiwang Kartasasmita (third from right) attends the opening ceremony of PT Daimler Commercial Vehicles Manufacturing Indonesia's new factory in Cikarang, West Java, on June 10. — The Jakarta Post
JAKARTA: PT Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI), a subsidiary of Germany's Daimler Truck, officially opened a new factory in Cikarang, West Java to manufacture buses and trucks for both domestic sales and export markets.
Spanning 15ha and backed by around 500 billion rupiah investment, the facility will produce various models of Mercedes-Benz Axor trucks and specially designed Mercedes-Benz bus chassis tailored for the Indonesian market.
'We are committed to creating jobs, driving innovation and contributing to the growth of Indonesia's economy,' said DCVMI president director Sankara-narayanan Ramamurthi in a statement.
The company had previously operated out of a plant in Wanaherang, West Java, since 1978.
However, in September 2023, that facility was acquired by Inchcape and Indomobil, which they use to produce Mercedes-Benz passenger cars and other brands under their portfolio, including Great Wall Motor (GWM).
Industry Minister Agus Gumiwang Kartasasmita said in a statement on Tuesday that with an annual production capacity of 5,000 vehicles, DCVMI now ranks among the top five commercial vehicle manufacturers in Indonesia.
He expressed hope that the new facility would pave the way for developing new models and upgrading emissions standards for its vehicle models from Euro 4 to Euro 5 or even Euro 6, which could translate to boost to its export performance.
'The government also hopes DCVMI can raise the local content of its products, which currently averages 28.08%,' Agus said in a statement.
He also noted that Indonesia posted a 9.7 trillion rupiah trade deficit in commercial vehicles during the first quarter of the year.
While exports reached just US$75.5mil, imports soared to US$684.2mil, a gap that underscores the urgency to strengthen local manufacturing.
Beyond DCVMI, several other automakers are also building their local factories or ramping up their production footprints in Indonesia, especially those focused on electric vehicles (EVs).
Chinese EV giant BYD is currently building a new factory in Subang, West Java, backed by an estimated 16 trillion rupiah investment. Set to be completed by the end of this year, the plant will have the capacity to produce 150,000 EVs annually, with most units targeted for export.
Meanwhile, Vietnamese automaker VinFast is also pushing ahead with its factory project in the same area.
Backed by an investment of around four trillion rupiah, the facility will sit on top of 120ha of land and is slated to begin operations next year, with a projected output of 50,000 EVs per year.
The country saw car sales decline 16.1% year-on-year to 60,613 units in May, down from 71,391 in the same month last year, according to monthly wholesales figures released by the Association of Indonesian Automotive Manufacturers.
Weakening household purchasing power was the key reason behind the slump in auto sales, as economic conditions had yet to show meaningful improvement, Gaikindo said on Monday, as quoted by Bisnis.com. — The Jakarta Post/ANN
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