RMA Indonesia Addresses Plans for Local Ford Assembly

The Indonesian automotive market is once again stirred by rumours regarding the potential return of local production for the legendary American brand, Ford. RMA Indonesia, the current authorised distributor for Ford, is reportedly exploring various strategic possibilities to strengthen its market penetration, including the option of localisation.

This step is considered crucial given that competition in the light commercial vehicle and premium sport utility vehicle (SUV) segments—two lines where Ford relies on the Ranger and Everest—is becoming increasingly intense with the arrival of new challengers. Government incentives for domestically assembled vehicles also serve as a significant draw for manufacturers.

Roelof Lamberts, Regional Director of RMA Indonesia, stated that the company is currently conducting an in-depth study regarding the implementation of Completely Knocked Down (CKD) facilities in Indonesia. CKD facilities serve as an important bridge for a brand to increase price competitiveness through import tax efficiencies and the utilisation of local content (TKDN).

However, the decision to establish an independent assembly line requires careful calculation regarding long-term sales volume projections and domestic market stability. “We will provide an update to our media colleagues as soon as there are further developments that we can share,” Lamberts said when contacted recently.

Previously, Lamberts mentioned that RMA and Ford are investigating the possibility of car assembly in Indonesia, though discussions are still in the early stages. He noted that several parties are involved in discussions to assess the feasibility and potential realisation of Ford vehicle assembly within the country. In addition to establishing their own factory, Lamberts also stated that they are not ruling out the possibility of using assembly facilities owned by other companies.

Currently, Ford’s presence in Indonesia relies on robust models imported as Completely Built Up (CBU) units. A return to local assembly (CKD) status is predicted to not only reduce retail prices but also restore the confidence of loyal consumers in Ford’s long-term commitment to the national automotive market.