Vietnamese EV maker VinFast is set to expand its operations to Indonesia this year. After talks with Indonesian President Prabowo Subianto, the company is set to build a factory and install 10,000 EV chargers across the archipelago.
VINFAST’S INVESTMENT
VinFast executives and President Prabowo Subianto met in Jakarta last March 11 to discuss the company’s investment plans in Indonesia. The meeting concluded with two commitments from VinFast which are set to begin this year.
According to investment minister Rosan Roeslani, VinFast will build a facility in the country’s West Java province. The factory is expected to be fully operational next year, with a production capacity of 50,000 EV units annually. The new facility, which the company broke ground for last year, cost an estimated AUD 317 million.
In addition to the EV factory, VinFast also committed to installing 100,000 charging ports across Indonesia. The government hopes that the addition of these charges will further drive EV growth. “(VinFast) has selected the charging station points. For us, with EV infrastructure, adoption of electric cars can rise,” Roeslani told interviewers.
VinFast is Vietnam’s own electric vehicle (EV) manufacturer. The company sold delivered 97,000 units last 2024—achieving it sales target of 80,000 units. While VinFast is largely successful in its home country, the company has high ambitions to compete in the international market. Despite the company’s lofty goals, VinFast is struggling to reach the same success abroad and reported a loss of AUD 3.1 billion last year.
VinFast previously expanded operations in India, as part of its efforts to grow globally. Aside from the West Java plant, the company also plans to build a facility in North Carolina, USA this year. The EV maker hopes to establish itself in other regions and continents such as Europe, Latin America, and Africa.
EV GROWTH IN INDONESIA
VinFast is not the only EV maker to set foot on Indonesian shores. Chinese EV giant BYD previously announced that it would build its own factory in the country’s West Java province. Similar to VinFast’s commitment, BYD partnered with Indonesia’s state electricity company PLN to bring EV charging solutions to the country. PLN also purchased a fleet of 10,000 EVs from BYD prior to their agreement.
EV sales in Indonesia grew significantly in 2024, with over 200,000 EV units sold last year. Though interest in zero-emission vehicles is rising, the Indonesian government continues to push for EV adoption among its citizens. They have even offered tax incentives for purchasers of low-emission vehicles. However, price and lack of supporting infrastructure like EV chargers deter Indonesian consumers from buying an EV.
Furthermore, the Indonesian government has high hopes for the country to become a global EV hub. Thanks to its nickel rich reserves, Indonesia is a popular choice for battery manufacturers. The Indonesian government is keen on leveraging this for future investors and EV manufacturers.
Last year, Southeast Asia’s first EV battery factory was built in the archipelago. This facility was the combined effort of Korean companies Hyundai and LG and the Indonesian government.
The push for EVs is one of Indonesia’s solutions for its air pollution problems. Poor fuel quality used by thousands of vehicles countrywide contributes to the country’s poor air quality. To help alleviate this, VinFast and the Indonesian governments are also discussing alternate energy solutions, such as wind farms and solar panels.
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