Mahindra factory plans in Indonesia have long been discussed

JAKARTA — Mahindra’s investment plan in Indonesia has resurfaced following a co-operation agreement between the Indian company and PT Agrinas Pangan Nusantara. The collaboration covers not only vehicle procurement but also opens opportunities for the establishment of production facilities in the country.

Joao Angelo De Sousa Mota, the President Director of PT Agrinas Pangan Nusantara, said that the cooperation with Mahindra includes a mid-term investment commitment. This forms part of the business development plan and also strengthens the brand’s presence in the Indonesian market.

‘And the plan within the agreement, particularly with Mahindra, in addition to setting up workshops and dealers, they have also agreed that perhaps I can show later that by 2027 or up to 2028 a factory must be built in Indonesia,’ Joao told reporters in Jakarta, a few days ago.

On the other hand, the Indonesian brand owner Mahindra’s side also admitted that the idea of building a factory has actually long been discussed. This shows the seriousness of both the principal and local partner to expand industrial activity domestically.

‘If we are to build a factory, we have talked about it for a long time,’ Wilda told reporters in a separate occasion.

However, Wilda explained that to date there has been no final decision regarding who will invest. He said the decision is still awaiting further discussions with Mahindra.

‘Hopefully so,’ said Wilda when asked whether there will be a result from the discussions next year.