(Yicai Global) July 12 -- Chinese automaker SAIC-GM-Wuling Automobile Co. officially started production yesterday at its newly-built facility in Bekasi Regency, West Java, Indonesia, and Jusuf Kalla, the country's vice president, attended the commissioning ceremony, state-run Xinhua news agency reported.

USD700 million was invested in the factory, which covers a 600,000-square-meter area and has parks for original equipment manufacturers (OEM) and suppliers. The center was designed to be able to produce 120,000 cars per year.

SGMW's Indonesian factory will primarily produce Wuling-branded multi-purpose vehicles (MPV). It is poised to satisfy Indonesian market demand before becoming an export base for other ASEAN countries. With a localization rate of 56 percent, the facility will roll out vehicles that will be sold in Indonesia from the third quarter.

Kalla congratulated SGMW on completing the project in two years. The automobile industry can drive economic growth and social progress in Indonesia as it is able to advance the development of hundreds of sectors, he said.

The production line will create jobs and make cars more available to Indonesians. It is expected that the factory will spur regional demand for parts, fostering economic growth in the country. 

SGMW's Indonesian factory has created over 3,000 local jobs and formed a complete industrial chain covering manufacturing, supply and sales, said Chen Hong, chairman of SAIC Motor Corp. SGMW plans to provide more quality automobile products and services to Indonesia under the guidance of the Belt and Road initiative.

Construction of the SGMW factory started in August 2015.