Bogor. Mazda on Tuesday inaugurated its first vehicle assembly plant in Indonesia, marking the Japanese automaker's entry into local manufacturing with an initial investment of around Rp 400 billion ($22.1 million).

The facility, operated by PT Eurokars Motor Indonesia, Mazda's sole distributor in the country, has an initial production capacity of 10,000 vehicles per year and will begin assembling the Mazda CX-30 sport utility vehicle using the semi-knocked down (SKD) method.

Chief Operating Officer Ricky Thio, who also serves as President Director of Mazda Indonesia, said the Rp 400 billion represented the initial phase of investment, with additional spending planned as the plant expands toward full-scale production.

"The initial investment is around Rp 400 billion, but it will continue to increase as we add facilities to meet Mazda's global manufacturing standards ahead of mass production," Ricky said during the inauguration ceremony.

He described the new plant as the foundation of Mazda's long-term manufacturing strategy in Indonesia, adding that the company plans to assemble additional models beyond the CX-30.

"We're starting with one model, but we won't stop there," he said.

The five-seat CX-30 compact SUV, powered by a 2.0-liter engine, is priced from Rp 585.5 million in Indonesia.

The inauguration was attended by Setia Diarta, Director General of Metal, Machinery, Transportation Equipment and Electronics Industries at the Industry Ministry.

He welcomed Mazda's investment, saying the plant would strengthen Indonesia's automotive manufacturing sector through increased domestic production, technology transfer, workforce development and job creation.

With a dedicated production line built exclusively for Mazda vehicles, the facility differs from shared assembly operations used by some automakers. Mazda said the plant's equipment, manufacturing processes and quality-control systems have been designed specifically to comply with the company's global production standards.