Partnering with a three-wheeled vehicle manufacturer in Indonesia, Kaisar Motor, Chinese automotive manufacturer, PT Sokonindo Automotive (PT SA), in November this year plans to start the trial production of multipurpose vehicles (MPV) in Indonesia, using either diesel fuel or gasoline (BBM). According to the Management and Technical Advisor of PT SA, Alexander Barus, in Jakarta, on Thursday (July 23), with a first-phase investment value that has begun for the construction of factory in Cikande, Serang, Banten, the company started with an initial capital of USD 150 million in Indonesia.
“Gradually they will start assembling these vehicles in Indonesia, although the engines must be imported from China. Chinese company, who cooperates with Dongfeng brand owner, in the first stage after the trial, will begin producing 50 thousand units. In their country, they produce up to 170 thousand units per year. Therefore, they intended to make Indonesia as their production base for the ASEAN region, “he said after accompanying owner of Kaisar Motor, Herman Djaya, and representative of PT Sokonondo, to meet with Minister of Industry, Slaeh Husin.
The resulting product is a versatile family sedan (MVP) with an engine capacity of 1,300 cc and 1,500 cc. Through the factory located in Cikande, Serang, they have also completed the licensing and machinery construction for the production line, which is planned to be in four stages by using conveyor system. The current stage of plant construction has reached about 40 percent. “To meet the needs of the Indonesian lower middle class, Sokon intended to localize the local content gradually, so that in the next five years, it is expected to reach a local content of 80 percent.
Therefore, we expect that there will be a remaining 20 percent which is to be imported from China. In order to compete with similar products, the company believes that its products will be favored, as they have mastered a system that has been prevailing internationally, ranging from delivery of goods (delivery), competitive price, and after-sales service. In terms of product quality, we are trying so that the product produced in Indonesia is one level higher than that one produced is Soko, China. Likewise, the name of the product will have Indonesian animal nuances, such as Sokon Nuri or Sokon Rajawali.
In addition to meeting domestic demand, in the fourth year of production, it is expected that Sokon Production will meet needs of ASEAN and other countries that have corresponding specifications. To that end, Barus added that Chinese products will be assembled in the country, and it has equipped its production lines with the presence of Kaisar Motor tricycle network, which reaches 40 primary dealers throughout Indonesia. While, the factory in Cikande in using the previous location of Sanex Motor. “We will complete the distribution network and vehicle repair shops trough a system, which is done gradually, in stages, and sustainably,” he said.
Industry Minister, Saleh Husin, welcomes the entrance of Sokon investment since last year, which plans to produce vehicles in Indonesia. The production plan is for 100-200 thousand units in the future. Moreover, a portion of their production will be exported, in addition to meeting domestic needs. (E)
Business News - July 28, 2015