Chery to Invest Rp 5.2 Trillion in Indonesia for EV

Autoini.com – In a bold move that could reshape Southeast Asia’s electric vehicle landscape, Chery has pledged to invest Rp 5.2 trillion in Indonesia, aiming to transform the country into its EV export base. This commitment arrives at a time when Indonesia’s EV market share is rising fast, and the government is pushing to build its ecosystem of battery, components, and infrastructure. But what exactly is behind this investment? And how feasible is it? In this article, we explore Chery’s plan, the current Indonesian EV landscape, and what it means for all stakeholders.

The Big Picture: Why Indonesia?

Chery Investment Indonesia: A Strategic Move

Chery investment Indonesia represents more than just local assembly — it’s a calculated step toward establishing Indonesia as a hub for exports across ASEAN and beyond. The automaker has already shipped its Omoda 5 EV from Indonesia to Vietnam (120 units in 2024), marking the beginning of its export journey.

Indonesia’s vast nickel reserves make it highly attractive for electric vehicle makers, especially for battery production. The government’s EV policies, which include tax breaks and import duty exemptions, further strengthen Indonesia’s position as a long-term manufacturing base.

Image Source – Chery

Indonesia EV Market Share on the Rise

In 2024, electric vehicle sales in Indonesia tripled compared to 2023, pushing EVs to over 7% of total car sales. By mid-2025, EVs captured approximately 9.7% of new car sales. The government targets local production of 600,000 EV units by 2030, showing clear national ambition to lead the regional EV transition.

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Chery’s Progress in Indonesia

Since late 2023, Chery has taken several milestones to strengthen its local presence:

Local assembly began in late 2023.
First local EV — Omoda E5 — rolled off the production line in Bekasi in December 2023.
Exports of Omoda 5 EVs to Vietnam started soon after.
Market performance: Chery ranks 4th among Chinese EV brands in Indonesia (Jan–July 2025) with approximately 5,196 units sold.

Key Highlights at a Glance

Key Area	Insight / Data
Investment Size	Rp 5.2 trillion (through 2030)
Objective	Make Indonesia the EV export base
EV Share 2024	Over 7%
EV Share 2025 (Jan–July)	~9.7% of new car market
Competition	BYD leads; Chery holds strong among Chinese EV makers
Export Start	Omoda 5 EV exports to Vietnam (2024)
Production Start	Local EV assembly since December 2023

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Challenges and Risks Ahead

While the commitment is promising, several challenges remain:

Execution risk: Large investments often face timeline and scope delays.
Competition: BYD, Wuling, and Neta are aggressively expanding in Indonesia’s EV space.
Supply chain complexity: Despite abundant nickel, developing full battery ecosystems remains difficult.
Infrastructure gap: Charging networks, local components, and recycling systems still need improvement.
Consumer adoption: EV affordability and long-term reliability perceptions continue to evolve.

What It Means for Indonesia’s EV Industry

Chery’s large-scale investment could accelerate Indonesia’s EV industry growth in several ways:

Boosting investor confidence in Indonesia’s industrial readiness.
Encouraging more local battery and component production.
Creating new job opportunities and skill development programs.
Enhancing Indonesia’s role in the ASEAN EV supply chain.

Conclusion

Chery’s Rp 5.2 trillion investment represents a pivotal moment for both the automaker and Indonesia’s EV ambitions. If implemented as planned, it will strengthen Chery’s regional presence and support Indonesia’s goal to become the EV export base of Southeast Asia. However, the success of this bold move depends on the readiness of infrastructure, supply chain, and market demand. The coming years will reveal whether this investment turns Indonesia into the new heart of Chery’s global EV operations.