Mercedes-Benz Selects Inchcape and Indomobil as Manufacturers and Distributors in Indonesia

  • Joint Venture Agreement to Strengthen Mercedes-Benz Position in Indonesia's Automotive Market

distribution operations of Mercedes-Benz in Indonesia.

Jakarta, Otojatim.com - Inchcape Motors Private Limited and PT Indomobil Sukses Internasional Tbk have been appointed by Mercedes-Benz AG to run the assembly and distribution operations of Mercedes-Benz in Indonesia.

Mercedes-Benz AG has decided to transfer the operational activities of PT Mercedes-Benz Indonesia, the manufacturer of Mercedes-Benz passenger vehicles in Indonesia, and PT Mercedes-Benz Distribution Indonesia, the importer of CBU vehicles and distributor of Mercedes-Benz passenger vehicles in Indonesia, to a partnership consisting of experienced local investors and strong global distributor operators.

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The aim of this transfer is to strengthen Mercedes-Benz's position in Indonesia and to further develop its business in the country by partnering with experienced automotive business associates. The transfer of the Mercedes-Benz Indonesia vehicle manufacturing and distribution entities is in line with existing government policies and regulations.

Mercedes-Benz AG, Inchcape, and Indomobil have signed a purchase agreement for the Mercedes-Benz Indonesia factory and distributor. Mercedes-Benz, along with Inchcape and Indomobil as the new owners, will ensure the sustainability of the Mercedes-Benz business in Indonesia in all aspects, with the aim of providing long-term security and a high level of transparency for all stakeholders.

The production process at the factory located in Wanaherang, Bogor will continue without interruption, all employees will continue to work and be given the opportunity to work in their current companies under new ownership, all employment policies will remain the same and comply with applicable regulations, and all Mercedes-Benz customers in Indonesia will continue to receive the best quality products and services as they have for years.

Mercedes-Benz will also establish a new company that is 100% owned by Mercedes-Benz to support and guide the new owners.

The transaction involves the transfer of 100% ownership of Mercedes-Benz AG in Indonesia, with Inchcape taking 70% and Indomobil taking 30%. This transaction will develop cooperation between Inchcape and Indomobil, sustainably building their presence in Indonesia.

Matthias L├╝hrs, Head of Region Overseas Mercedes-Benz Cars, said: "We are restructuring our business to strengthen our position in the Indonesian market, and to continue to grow by partnering with strong international and experienced local associates such as Inchcape and Indomobil. All employment will continue as it is, and our customers will continue to be served. We believe in the huge potential of the Indonesian market, and we are delighted to work with reliable associates for the continuation of our business. We look back at our experience working with Inchcape, a strong and competent associate, and we are excited to deepen the cooperation that has been established with this important step."

Ruslan Kinebas, Inchcape's APAC CEO, said: "We are delighted to expand our wings in Indonesia with the transfer of Mercedes-Benz Indonesia's business activities to our joint venture with Indomobil, with whom we already have a strong distribution partnership in Indonesia. We look forward to further developing the Mercedes-Benz business by combining our local knowledge and digital and data capabilities. This development is evidence of Inchcape as Mercedes-Benz's preferred associate in the optimization of their global performance."

Jusak Kertowidjojo, CEO of Indomobil, added: "We firmly believe that with our involvement as a strong local entity in partnership with a global automotive entity such as Inchcape, Mercedes-Benz can continue to grow in Indonesia and support the Indonesian government in developing the automotive industry in the country in the future."(*)
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