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Honda is looking to invest huge in Indonesia. But, it is nowhere near electrification. (Image via Car Logos)
Honda's Rp5.1 T investment is for new models, not electric cars, source says
On the sidelines of the "Honda Festival 2" in Kemayoran, Jakarta, a source affiliated with Honda Motor Company (HMC) hinted that the Japanese automotive company is preparing Rp5.1 trillion investments from 2020 onward until 2023 for Indonesia.The investment was said for the localization of Honda’s automotive industries and the development of new models.
Director of Business Innovation and Sales & Marketing of PT Honda Prospect Motor, Yusak Billy, said that Honda is committed to supporting government programs in developing domestic industries. Unfortunately, electrification was not listed in the plan.
The same good news also came from Indonesia’s Ministry of Industry (Kemenperin). A handful of Japanese automotive companies are going to invest in Indonesia in the next couple of years. The investment was said to amount to Rp33 trillion. And, one of them will be Honda.
It is unfortunate that the Rp5.1 trillion investments are not going for electric and hybrid vehicles. But, it is not over yet. HMC claimed that it had formulated strategies for electrification which will be well-received by the Indonesian market. Yusak predicted that Honda will rely on hybrid cars to win the Indonesian market.
Kemenperin claimed in its official statement that it had done a one-on-one meeting with the Japanese automotive manufacturers in Tokyo, whose products were well received in Indonesia. They were Daihatsu Motor Corporation, Hino Motor Corporation, Toyota Motor Corporation, Suzuki Motor Corporation, Isuzu Japan, Mitsubishi Motor Corporation, and Honda Motor Company.
Not only for new model and localization but also Kemenperin explained that HMC is going to establish a research and development (RnD) center in Indonesia thanks to the Presidential Regulation (PP) No. 45 of 2019.
Should Honda establish its RnD center in Indonesia, PP No. 45 of 2019 will give Honda a 300 percent super deduction tax.
Source: https://bit.ly/2rlGCVG
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