Sunra Invests US$ 120 Million to Build Electric Motorcycle Factory in Indonesia

MOTOR LISTRIK - JAKARTA. PT Sunra Asia Pacific Hi-Tech, also known as Sunra Indonesia, has begun construction of an electric motorcycle factory in the Kendal Industrial Zone, Central Java. The commencement of this project was marked by a groundbreaking ceremony held on Friday (3/5).

Zhang Chongshun, Chairman of the Sunra Group, stated that the construction of the Sunra Indonesia factory signifies a conducive investment climate, particularly in the two-wheeled electric vehicle industry. For this factory construction, Sunra Indonesia has committed a total investment plan of US$ 120 million.

Sunra officially invested in the Indonesian market in 2023, with a large-scale investment in the two-wheeled electric vehicle industry.

"The construction of the Sunra factory in Indonesia is crucial to ensure product quality and provide better after-sales service," Zhang revealed in a press release broadcasted on Sunday (5/5).

The Sunra Indonesia factory is being built on a 12.7-hectare plot of land and is planned to be completed in two phases. The construction period is estimated to last 18 months, and the factory is expected to be operational by 2025.

The factory is designed to meet a basic annual production capacity of 1 million two-wheeled electric vehicles once fully operational. Four main processes of electric motorcycle production will be carried out in this factory, ranging from frame making, welding, painting, and final assembly, and will be equipped with a motorcycle workshop and a battery pack workshop.

The factory construction in the first phase will reach 100,000 square meters. Once the entire factory construction is completed, Sunra Indonesia will actively integrate supply chain resources, create a supply chain ecology, and enable more supporting manufacturers to localize in Indonesia.

The factory can absorb 1,500 local workers, thus opening new opportunities for job creation, especially for the surrounding community. In addition, Zhang added that the construction of this factory is also a form and support of Sunra Indonesia's commitment to government programs and vision.

This includes realizing an environmentally friendly and low-carbon industry and transportation strategy. "We hope to make a significant contribution to government programs and accelerate the formation of an electric vehicle ecosystem in Indonesia," said Zhang.

The groundbreaking ceremony of the Sunra electric motorcycle factory was attended by the Director General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE) Industry, Taufik Bawazier, representing the Minister of Industry Agus Gumiwang Kartasasmita. Also present were the Head of the Central Java Province Investment and Integrated One-Stop Service Agency Sakina Rosellasari and the Assistant for Economy and Development of the Central Java Province Regional Secretary Sujarwanto Dwiatmoko.

Taufik Bawazier conveyed that the government is currently focusing on the implementation of the acceleration program to improve the motor vehicle electrification ecosystem to fulfill Indonesia's commitment to reduce greenhouse gas emissions. The target is 11.89% with its efforts up to 43.20% with international assistance by 2030.

Several issues related to climate change and the increasing trend of using new and renewable energy have become catalysts for the transformation of the motor vehicle industry in Indonesia.

About this, the Government has issued Presidential Regulation (Perpres) Number 79 of 2023 Concerning Amendments to Perpres Number 55 of 2019 Concerning the Acceleration of Battery Electric Vehicle Program for Road Transportation.

In line with this, the Ministry of Industry has issued two Minister of Industry Regulations (Permenperin), namely Permenperin Number 28 of 2023 concerning amendments to Permenperin Number 6 of 2022 concerning Specifications, Road Map Development and Calculation Provisions of Domestic Component Level Value (TKDN) KBLB.

Then, Permenperin Number 29 of 2023 Concerning Battery-Based Electric Motor Vehicles in Complete Disassembled Condition and Incomplete Disassembled Condition. The issuance of these regulations is expected to attract more investment and accelerate market creation of KBLBB in Indonesia.