Chinese automotive companies should not merely aim at selling cars in Indonesia, they should also make the country as production base, a government official said on Thursday.

"We hope that Indonesia will become the production base (of Chinese automakers), although normally they will begin with assembly plants using local components," Budhi Dharmadi, director general of transportation industry with the Ministry of Industry said, according to a Xinhua News report.

Budi said whether Chinese cars will grab a major share of Indonesia's growing auto market remains to be seen.

"Local buyers are loyal to certain brands. I think Chinese car makers have targeted a different market segment here," he reportedly said, noting that Chery Automobile had made its debut here by selling mini sedans whose market was tiny.

Apart from Chery, China's Geely International announced its Indonesian presence earlier this month, aiming to sell sedans with three engine variants.