BYD is set to build its own plant in Subang, West Java in Indonesia. Following the brand’s official launch in the country last year, this plant is one of many “planned investments” from Chinese companies on Indonesian soil.
Indonesia’s plans
Plans of a local Indonesian plant circulated as early as last year, when BYD first debuted in Indonesia. The news initially specified that BYD would build a factory worth AUD 2 billion, according to Chief Economic Affairs Minister Airlangga Hatarto. Months later, the Indonesian government announced that the Chinese automaker plans to invest up to AUD 11.5 billion in local investment plans.
BYD and local company PT Suryacipta Swadaya will construct this development in West Java’s Subang Smartpolitan. According to Kontan, the location is “integrated with various national strategic infrastructures.” Indonesia’s Investment Minister Rosan Roeslani said recently that production in the Subang plant will begin in 2026. This plant is expected to have a production capacity of 150,000 units per year.
BYD’s investment is part of Indonesia’s efforts to aid the country’s shift to electric vehicles (EV). This investment will not just benefit motorists but the population’s working force as well. “We are not only absorbing thousands of workers, but also transferring technology and industrial expertise,” said BYD Motor Indonesia’s president director Eagle Zhao.
The next global EV hub
Aside from BYD, similar Chinese EV makers such as GAC Aion and Citroen have shown interest in manufacturing cars in Indonesia. The Indonesian government has offered incentives to foreign investment for the EV sector. According to ASEAN Briefing, foreign EV companies that bring their business to Indonesia can avail of “an exemption on import taxes for machinery and equipment, as well as a reduced luxury sales tax rate of 15 percent.”
Indonesia is well on its way to becoming a global EV hub. Its investments also encompass other aspects of the EV supply chain. Seeing as the country is a leader in the nickel industry, it is also a strong contender for EV battery production. Just last year, Indonesia inaugurated Southeast Asia’s first EV battery factory alongside Korean companies Hyundai and LG.
Reports claim that the Indonesian government is also looking to other auto makers from America and Europe to bring their business to the country.
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