Press Release:
BAW Indonesia Accelerates Local Assembly Commitment with Signing Ceremony with PT Handal Indonesia Motor
The local production initiative supports the Indonesian government’s goal of achieving at least 40% of the Local Content Requirement (TKDN).
Jakarta, Indonesia, July 31, 2026 — After its official debut at the 2026 Gaikindo Indonesia International Auto Show (GIIAS), Beijing Automobile Works (BAW), through PT BAW Automobile Trading Indonesia, today signed an agreement with PT Handal Indonesia Motor to advance its local vehicle assembly plans in Indonesia.
The agreement marks a significant milestone in BAW’s localization strategy and emphasizes the company’s commitment to quickly developing a sustainable automotive business in the country. This partnership also represents BAW Indonesia’s initial step in supporting the Indonesian government’s automotive localization targets, including the goal of achieving a minimum 40% Local Content Requirement (Tingkat Komponen Dalam Negeri/TKDN).
Today’s signing ceremony marks a major step in fulfilling the commitment we announced at GIIAS 2026. The quick progress of this collaboration demonstrates BAW Indonesia’s seriousness in speeding up local vehicle assembly. We are committed to supporting the Indonesian government’s localization policy and working steadily toward reaching at least 40% TKDN through local production, supply chain development, and cooperation with Indonesian partners,” said Tocy Tang, President Director of PT BAW Automobile Trading Indonesia.
Through its partnership with PT Handal Indonesia Motor, BAW Indonesia will begin establishing the manufacturing processes and production capabilities needed for locally assembled vehicles. The initial phase will focus on battery electric vehicle (BEV) models in the MPV and city-car segments, selected to meet the evolving mobility needs of Indonesian consumers.
The MPV segment is expected to satisfy the strong demand for spacious and practical family transportation in the country, while the city-car segment will offer an efficient and eco-friendly solution for daily urban commuting. By focusing on these two segments, BAW aims to make electric mobility more relevant and accessible to a broader range of Indonesian consumers.
The available production capacity is expected to reach 15,000 units annually, giving BAW the flexibility to meet domestic demand and support its future product development initiatives.
Local assembly plays a crucial role in BAW Indonesia’s long-term strategy to increase the use of locally sourced parts, boost operational efficiency, improve supply chain responsiveness, and produce products better aligned with Indonesian market needs. This initiative is expected to support the growth of Indonesia’s electric vehicle industry while creating opportunities for local suppliers and other automotive partners.
This collaboration goes beyond just assembling vehicles in Indonesia. It aims to build an integrated and sustainable automotive ecosystem that covers manufacturing, local sourcing, sales, and after-sales services. Together with PT Handal Indonesia Motor and other Indonesian partners, we strive to contribute significantly to the growth of the national automotive industry,” Tocy Tang added.
After the signing ceremony, BAW Indonesia and PT Handal Indonesia Motor will proceed with technical preparations, production planning, local supplier development, and operational coordination. More details about the locally assembled models and the production schedule will be provided later.
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