Chery's Strategy to Achieve 60 Percent Local Content in iCar Products

WUHU, KOMPAS.com – Chery is preparing a strategy to meet the increase in domestic content levels (TKDN) for the iCar line as a new sub-brand in Indonesia. This step is being taken in line with the target TKDN for electric vehicles, which will rise to 60 percent next year from the previous 40 percent. President of Chery International, Zhang Guibing, stated that this readiness is supported by the Chery Group ecosystem that has been established in Indonesia. He explained that this support includes sales networks up to relationships with suppliers that have been built previously. With this foundation, Chery is optimistic about being able to meet various government regulations, including higher TKDN targets. “Our suppliers are already established and trust us. So overall, we are confident in being able to meet the various policies implemented by the Indonesian government,” he said. Nevertheless, Zhang emphasised that the company will not wait until the deadline to start adapting. “Of course, we must move quickly, no need to wait until next year (to chase the 60 percent TKDN),” he stated. The iCar products are planned to soon enter the assembly line in a completely knocked down (CKD) manner at partner manufacturing facilities with an initial target TKDN of at least 40 percent. This regulation refers to Presidential Regulation No. 79 of 2023 on the acceleration of the battery-based electric motor vehicle programme. In that regulation, the TKDN for electric vehicles is set at a minimum of 40 percent for the 2022–2026 period, increasing to 60 percent in 2027–2029, and targeted to reach 80 percent starting from 2030.