BMW builds factory in Indonesia to boost luxury car sales

BMW launched the 7 Series sedan in Indonesia on November 30. To stimulate the long-term demand for luxury cars in Indonesia, BMW decided to assemble the 7 Series sedan in Indonesia.

BMW has invested 210 billion rupiahs ($15 million) in Indonesia over the past five years, mainly to assemble models locally, with the 7 Series recently added to the local production line. In 2015, BMW sold 3,638 vehicles in Indonesia, up 5.7% year-on-year. BMW executives did not give a sales forecast for this year and next. Axel Pannes, managing director of BMW Group Asia, said, "We are very confident about Indonesia's future and we expect its luxury car market to have great room for development."

Jongkie Sugiarto, co-chairman of the Indonesian Automotive Industry Association, said that if automakers set up local assembly plants, import tariffs on certain parts will be reduced, which will greatly benefit automakers. For Indonesia, foreign companies building factories locally can bring investment and increase employment.

I Gusti Putu Suryawirawan, Director General of Indonesian Hardware, Machinery, Transportation Equipment and Electronics Industry, said that the Indonesian government will adopt incentive policies for foreign companies that produce cars in Indonesia. I Gusti Putu pointed out that the purpose of doing so is "to let them produce in Indonesia, thereby driving the development of local suppliers", and emphasized that the development of the automotive industry is an important part of Indonesia's overall economic development. According to the latest forecast of the Indonesian Central Bank, Indonesia's GDP is expected to grow by 5% in 2016 and 5.4% in 2017.

To reduce costs and facilitate faster car delivery for customers, Daimler's Mercedes-Benz has also increased its parts production in Indonesia. An operations and product management director of Mercedes-Benz Indonesia said that the Indonesian government will adopt fiscal incentives for the luxury car market next year and launch a large number of infrastructure construction projects, and the luxury car market will have good development. In addition, the tax amnesty plan launched by Indonesia in July this year will also drive the growth of luxury car sales.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.