Jayanty Nada Shofa, Jakarta – French automobile brand Citroen is planning to start assembling its electric cars in Indonesia this July, a senior government official said on Friday.

Citroen's cars, including the EV model E-C3, are already available for purchase in Indonesia. Citroen today imports the cars to be sold in Indonesia from India under a completely built-up (CBU) scheme.

The local assembly plans means that Citroen will have its cars shipped in parts or completely knocked down (CKD). It will then work with a local factory to assemble the parts into an actual car.

"They [Citroen] will assemble its cars in Indonesia," Rachmat Kaimuddin, a deputy at the Coordinating Ministry for Investment Affairs, told reporters in Jakarta.

Rachmat, however, did not reveal the investment value, although it would be smaller compared to an actual production plant.

"The investment value for a domestic assembly is usually not that big. What we currently need is not for [foreign automakers] to build a plant, but we are focusing more on having those EVs enter and be produced in Indonesia for our people to use. If the demand grows, perhaps [Citroen] will be keen on building a plant in Indonesia," Rachmat said.

Rachmat said he had no idea of the assembly's production capacity. Citroen is one of the brands under the multinational automaker Stellantis. In 2022, Stellantis appointed local company Indomobil Group as the sole distributor of Citroen cars.

Indonesia has gotten several foreign automakers to assemble its cars in Indonesia. As a case in point, China's Chery has already invested Rp 250 billion (approximately $16 million) to assemble EVs locally with local partner Handal Indonesia Motor. In 2022, South Korea's Hyundai launched an automotive plant to produce locally assembled electric cars.

Automotive association Gaikindo data shows that sales of EVs in Indonesia reached 17,051 units throughout 2023.

Source: https://jakartaglobe.id/business/citroen-to-produce-evs-in-indonesia-starting-in-jul