Mazda Indonesia is developing a new manufacturing facility in West Java to expand its local production capabilities.

The company has provided an update on the construction of the facility, which is scheduled to commence operations soon. The Chief Operating Officer of Eurokars Motor Indonesia (EMI), Ricky Thio, confirmed that the Mazda factory in West Java is scheduled for inauguration in 2026.

Following the company's event in 2025, the official inauguration will take place in West Java the following year.

The assembly facility is estimated to involve an investment of IDR 400 billion (US$ 24.2 million). The exact location of the plant has not yet been disclosed.

Ricky stated that the factory will be inaugurated next year and requested patience until the formal opening.

Regarding electrification, Mazda currently offers the CX-80 plug-in hybrid electric vehicle (PHEV) and the Mazda MX-30 battery electric vehicle (BEV).

If these models are produced locally in Indonesia, they may qualify for tax incentives from the Government under the Minister of Finance Regulation (PMK) Number 12 of 2025.

Under the regulation, hybrid vehicles receive a 3% DTP luxury goods sales tax (PPnBM) reduction on the selling price, while domestically produced electric cars - completely knocked down (CKD) units with a minimum domestic component level (TKDN) of 40% - are eligible for a 10% DTP VAT incentive.

Ricky previously indicated that the first model to be manufactured at the new facility would be a compact SUV.

The plant is expected to increase Mazda's local production capacity and support the company's market growth in Indonesia.