BAIC's Prospective Electric Car Aims for 40% Domestic Content

TANGERANG, KOMPAS.com – BAIC reaffirmed its commitment to strengthening vehicle production in Indonesia by targeting local content, or Tingkat Komponen Dalam Negeri (TKDN), for cars assembled domestically. The target is important so that BAIC’s electric vehicle models can receive government incentives while supporting the development of the domestic automotive industry.

BAIC Indonesia Chief Operating Officer Dhani Yahya said all electric vehicles marketed in future would be assembled locally in Indonesia. ‘Certainly, all electric vehicles will be assembled locally by us. Although some units may initially be imported as CBU (Completely Built Up), the target is local assembly with a TKDN of 40 percent to obtain government incentives,’ Dhani said in Tangerang on 5 March 2026.

One model slated for domestic assembly is the BAIC BJ30. Preparations for local production have already begun, including technical training for staff.

‘Because the CBU price we announced last time was effectively subsidised to CKD-equivalent pricing, there will be no price changes for the BJ30 when it is assembled locally,’ he said.

Dhani also said BAIC’s vehicle assembly will take place at the facility owned by PT Handal Indonesia Motor in Purwakarta, West Java, with production expected to begin in June 2026.

In the company’s road map, localisation will be implemented gradually. Local production of the BAIC BJ30 will start in June 2026, and in August 2026 the BAIC BJ40 will begin using some local components such as tyres, wipers, and batteries. Meanwhile, the BAIC X1, launched in September 2026, will only be locally assembled in January 2027 with 40 percent local content to qualify for incentives such as 0 percent VAT (PPN) and PPnBM.

With this strategy, BAIC hopes to strengthen its position in Indonesia’s electric vehicle market while supporting government policy to boost the use of local components in the automotive industry.