JAKARTA. Chinese automaker, SAIC General Motors Wuling (SGMW) began preparing to produce cars in Indonesia. Currently, Wuling claims to increase the composition of locally produced components.

President of PT SGMW Motor Indonesia Xu Feiyun said that it had recorded local components, which can be parts of Wuling’s car production. Wuling plans to start producing the car in Indonesia in 2017. “To date, the composition of local component has exceeded 50%, but we are still looking for the other component manufacturers,” Xu Feiyun told KONTAN, Wednesday (30/11).

Wuling has also invited the component producers to occupy the supplier park of Wuling factory in Bekasi, West Java. “We have built cooperation with about 20’s local component producers. We have also brought in 15 prominent component suppliers to occupy supplier park in our factory,” Feiyun said, without mentioning the name of the suppliers.

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One of the local producers is PT Asahimas Flatglass Tbk. Starting from April 2017, the company will produce car glass for Wuling. “We will produce tempered and laminated glass for 4,000 of 7,000-8,000 units of Wuling cars,” said Assistant Center Manager of Asahimas Flat Glass Andreas Suryadi.

However, other component companies, such as PT Gajah Tunggal Tbk does not receive the offer from Wuling. “We do not receive the order from them (Wuling),” said Corporate Secretary of PT Gajah Tunggal Tbk Catharina Widjaja, Wednesday (30/11).

The tire producer Goodyear also does not receive order from Wuling. However, Goodyear is interested in supplying tires to Wuling. “Technically, we are able (to produce),” said GM Cooperate & Marketing Communication of PT Goodyear Indonesia Tbk.

The Association of Indonesian Small and Medium Automotive Component Industries (PIKKO) claimed that Wuling has brought its subcontractors from China. “They have offered us, but they already have the existing subcontractors,” said the Secretary General of PIKKO Rony Hermawan. According to Ronny, Wuling proposed unreasonable prices. Ronny claimed that the proposed prices are even insufficient to cover the material costs.

(Muhammad Farid/ Translator)