Mitsubishi Promises Additional Investment of IDR 10-Trillion

The Coordinating Ministry for Economic Affairs has published a press release around a working visit of the Coordinating Minister Airlangga Hartarto to Japan, which has produced concrete results for the country’s automotive industry.

In a meeting with the CEO of Mitsubishi Motors Corporation (MMC) Takao Kato, in Tokyo, Japan, Coordinating Minister Airlangga asked about MMC’s investment commitment in Indonesia. “Until now, MMC has invested IDR 11.3-trillion until the end of 2021 for all MMC factories in Indonesia. The target is that MMC will invest around IDR 10-trillion from 2022 to 2025,” said Coordinating Minister Airlangga.

Indonesia is a large market share for Mitsubishi, even compared to the Japanese market itself, Mitsubishi’s sales in the country are bigger. MMC will also diversify their products. After 2023, MMC will focus on producing the xEV type car model, which consists of the Xpander and Pajero Sport models. In addition, MMC will also produce two new electric vehicle (EV) models starting in 2024.

During the meeting, the CEO of MMC asked the Indonesian government to provide incentives related to the export of their products. Coordinating Minister Airlangga answered the request, “actually, in terms of the amount of tax, Indonesia is no less competitive with other countries, for example Thailand. However, because there is a large difference in regional taxes, it seems that taxes in Indonesia are higher. This is what we are studying at the Central Government.”

MMC since establishing Mitsubishi Motors Krama Yudha Indonesia (MMKI) in 2018 has continued to increase the number of exports, and making Indonesia a very important export base for Mitsubishi. Currently, the export of MMKI products to Australia is being prepared.

MMC also plans to increase its export destination countries, so that by 2022 there will be 40-export destinations for Mitsubishi products made in Indonesia. Meanwhile, the number of exports is estimated to be able to reach 72,000-units in 2022, an increase from 42,000-units in 2021, and is targeted at 98,000-units in 2024.

MMC has invested IDR 11.3-trillion until 2021 for the MMC factory in Indonesia, and will invest another IDR 10-trillion from 2022 to 2025. Mitsubishi also plans to issue a number of new vehicle models, with various types that are environmentally friendly.

Takao said, “Mitsubishi will diversify its products by issuing vehicles with the type of Hybrid Electric Vehicle (HEV) or Plug-in Hybrid Electric Vehicle (PHEV), and Battery Electric Vehicle (BEV) to support the Indonesian Government’s program to achieve carbon neutrality in 2060.”

In addition, MMC is conducting a pilot project to use BEV commercially with four companies. “The government welcomes MMC’s plan to collaborate with PT Pos Indonesia, PT Haleyora Power, Gojek and DHL Supply Chain Indonesia to use Mini Cab MiEV vehicles commercially,” said Coordinating Minister Airlangga.

This type of vehicle is similar to the Mitsubishi L300 which was already famous in Indonesia. Mitsubishi has started a pilot study for the commercial use of BEVs with the four companies, and is currently looking for a suitable use of the MiEV Mini Cab.

At the meeting, Coordinating Minister Airlangga was accompanied by Minister of Industry Agus Gumiwang Kartasasmita, while CEO of Mitsubishi Motor Company (MMC) Takao Kato was accompanied by MMC Executive Vice President Yoichiro Yatabe, MMC Division General Manager Hiroyuki Egami, and MMC Indonesia Desk Hideki Miya. (econ)


Source: Coordinating Ministry for Economic Affairs website

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