Jakarta. Chinese automaker Chery announced on Monday its investment of Rp 250 billion ($16 million) in an assembly plant to cater to the initial orders of electric vehicles (EVs) from Indonesian consumers.

The facility in Pondok Ungu, Bekasi, operates in collaboration with local company Handal Indonesia Motor, which has previously leased its vehicle assembly plant to various manufacturers.

Chery confirmed receiving orders for 400 units of its EV model, the Omoda 5E, in Indonesia. The country is projected to serve as Chery's production base for right-hand drive vehicles in the future.

"Our production begins this month, targeting the production of 400 units to meet orders until January. Deliveries are expected to commence in February," said Rifki Setiawan, a representative from Chery Sales Indonesia.

Expressing future plans, Rifki added, "We aim to establish our dedicated assembly plant and research center in Indonesia, making it our hub for right-hand drive vehicle production."

While Chery has previously produced crossover cars like the Tiggo Series and the gasoline variant of Omoda at Handal Indonesia's facility since last year, this marks the first venture into electric vehicles at the Bekasi plant.

Indonesian Chief Economic Minister Airlangga Hartarto expressed the government's enthusiasm towards Chery's initiative to manufacture electric vehicles in Indonesia.

The introduction of the Omoda 5E is anticipated to augment the limited range of EV brands available in Indonesia. Airlangga also hinted at the possibility of tax incentives for Chery if their products meet the local components and materials utilization criteria.

The government foresees Chery making Indonesia its regional production center to supply neighboring markets such as Vietnam, the Philippines, and Australia.

"We eagerly await the product launch and anticipate further investments by Chery," said Airlangga.