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BMW eyeing EV investment in Indonesia, ministry says
The carmaker is likely to adopt a completely knocked down (CKD) scheme to sell electric vehicles (EVs) in the country, according to Airlangga.
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Anindyanto Dwikumoro of BMW Group Indonesia product planning gets into the latest model of the BMW X3 sDrive20i in March 2019 in Serpong, South Tangerang, Banten. (The Jakarta Post/Dhoni Setiawan)
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erman carmaker BMW is poised to invest in electric vehicle (EV) production in Indonesia, according to Coordinating Economic Minister Airlangga Hartarto.
During a visit to the Indonesia International Motor Show 2024 in Kemayoran, Jakarta, Airlangga said on Thursday that the car company was likely to adopt a completely knocked down (CKD) scheme for its EV operations in the country.
“They already have a [local] facility,” Airlangga said, referring to BMW’s existing Indonesian production facility. He refused to provide further details, telling reporters: “Ask BMW directly.”
A CKD model refers to the local assembly of imported parts, which potentially could unlock government incentives.
Analysts previously suggested that CKD schemes could be a path for carmakers to increase the local content level of their products, making them eligible for tax incentives.
BMW Group Indonesia communications director Jodie O’Tania told The Jakarta Post on Thursday that “local EV production would be highly possible,” but she added that the plan was not feasible for the moment because the company’s existing EV models fall short of the local content level required by the government.
“That has always been our strategy [to establish local EV assembly],” Jodie said. “But if we want to join the incentive program, we can’t fulfil the requirements for now.”
