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Local assembly to make BMW 7 Series more affordable
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German quality: The company logo of German car manufacturer BMW is photographed at its headquarters in Munich. (Associated Press/Kerstin Joensson)
T
he Indonesian unit of German automaker BMW announced on Wednesday that it had begun assembling models of its 7 Series in Indonesia, in hope to reap the benefits of the government’s plan to scrap import duty for luxury car parts.
The company expects that the proposed scheme will reduce production costs and more Indonesians will be able to afford BMW cars.
“Assembling the 7 Series in Indonesia instead of importing completely built-up (CBU) units means we could lower the price and deliver the units faster to the market,” BMW Indonesia corporate communications head Jodie O’Tania said on the sidelines of the BMW 730Li's launch on Wednesday.
She added that the company could assemble up to six units of the 7 Series a day at its production network in Sunter, North Jakarta.
BMW Indonesia has mainly assembled units from its various series at its Sunter facility, such as the 3, 5, X1 and X3 Series.
The Industry Ministry is planning to issue a ministerial regulation by the end of the year that is set to scrap import duty for incompletely knocked down (IKD) vehicle parts. Currently, IKD item imports are subject to a 7.5 percent tariff.
The ministry’s director general of metal, machinery, transportation equipment and electronic industries, I Gusti Putu Suryawirawan, said the regulation was aimed at increasing the productivity of local car manufacturers.
“With the regulation, the government wants foreign car makers to increase the involvement of local manufacturers,” he said. (adt/hwa)
