Mazda Is Investing $25 Million to Build Its First Assembly Plant in Indonesia

JAKARTA, Investortrust.id — Japanese automaker Mazda Motor Corporation, through its sole Indonesian distributor PT Eurokars Motor Indonesia (EMI), has officially inaugurated its first local assembly plant in Citeureup, Bogor, West Java.

The new manufacturing milestone is backed by a capital investment exceeding Rp 400 billion ($25.15 million) as part of the company's long-term expansion strategy across Southeast Asia’s largest automotive market.

Mazda’s onshore assembly move signals growing confidence in Indonesia’s premium vehicle segment while aligning with Jakarta's aggressive push for higher local component content (TKDN). Transitioning from complete build-up imports to local assembly allows Mazda to optimize production costs, improve pricing competitiveness against regional rivals, and hedge against currency volatility.

Global Standards Fuel Local Assembly Vision

Spanning nearly 700,000 square feet (65,000 square meters), the facility is custom-designed according to Mazda’s global manufacturing standards.

The plant integrates Mazda's international quality control systems, specialized tooling, and standardized assembly processes to manufacture premium vehicles tailored for domestic consumers.

"The inauguration of the Mazda Indonesia Plant is not merely about opening Mazda’s first assembly facility in Indonesia, but serves as a foundation for Mazda’s future in the country," said Ricky Thio, President Director of PT Eurokars Produksi Pratama and Chief Operating Officer of PT Eurokars Motor Indonesia, during the official inauguration ceremony in West Java on Wednesday, July 29, 2026.

"Through this investment, we deliver Mazda’s global manufacturing standards while affirming our long-term commitment to grow alongside Indonesia and contribute meaningfully to the national automotive industry."

Phased Capacity Expansion and Supply Chain Integration

Eurokars Motor plans to scale assembly volumes in gradual phases to meet domestic demand trends.

Concurrently, the company is preparing to deepen its supply chain integration by expanding the use of locally produced components in collaboration with national automotive parts suppliers.

Indonesian government officials welcomed the investment as a strategic boost for domestic manufacturing capabilities.

"We hope the presence of this facility can deliver increasing value added to the national economy through enhanced domestic manufacturing activity, stronger technology transfer, human resource development, and expanded job creation in the automotive sector," said Setia Diarta, Director General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE) at the Ministry of Industry, during the launch ceremony on Wednesday, July 29, 2026.