Jakarta. Chinese automaker Chery plans to pour more than Rp 5.2 trillion ($334 million) into Indonesia by 2030 to expand its production capacity and strengthen its position in the country’s growing electric vehicle (EV) market, Industry Minister Agus Gumiwang Kartasasmita said on Wednesday.

Agus praised Chery’s commitment to advancing environmentally friendly vehicles in Indonesia, highlighting the company’s participation in the government’s Low Carbon Emission Vehicle (LCEV) program, which promotes the development of full hybrid, plug-in hybrid, and fully electric vehicles.

“This investment commitment demonstrates Chery’s serious intention to strengthen Indonesia’s automotive industry. The government will continue to encourage the acceleration of this investment realization,” Agus said in a statement on Wednesday.

The minister said Chery’s cumulative investment will exceed Rp 5.2 trillion by 2030, covering new production facilities either through partnerships or standalone plants. He added that the government has asked Chery to submit a more detailed five-year business plan outlining its production expansion and export strategies.

“We hope Indonesia can become Chery’s production and export base for electric vehicles in the ASEAN region,” Agus said.

Indonesia’s eco-friendly vehicle market has grown rapidly in recent years. Battery electric vehicles (BEVs) accounted for just 0.08 percent of total car sales in 2021, but their market share surged to 10.22 percent between January and August 2025. Chery currently ranks as Indonesia’s fourth-largest BEV brand by sales.

The government has encouraged Chery to expand its lineup of eco-friendly vehicles to cater to local consumer preferences while also opening opportunities for broader cooperation in technology development, workforce training, and EV ecosystem building.

Chery began assembling vehicles in Indonesia in 2022 at a facility owned by local partner Handal Indonesia Motor, which has an annual production capacity of 10,000 units. The Bekasi plant produces several models, including the Omoda E5, which became Indonesia’s best-selling EV in the first half of 2024.

The Omoda E5 meets the government’s minimum 40 percent local content requirement to qualify for EV subsidies. In 2023, Chery announced an initial investment of Rp 250 billion (around $16 million) to manufacture EVs for the Indonesian market.

Beyond Chery, other Chinese electric vehicle makers are also setting their sights on Indonesia. BYD is currently developing a $1.3 billion (Rp 21.6 trillion) manufacturing plant in Subang, West Java, slated to begin operations in January 2026. 

Meanwhile, Neta has also partnered with Handal Indonesia Motor (HIM) to assemble its electric cars in Indonesia. The collaboration began in May 2024 with completely knocked down (CKD) assembly of the Neta V and Neta V-II models at HIM’s Bekasi plant in West Java.

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