Hyundai to Invest USD2.8b in Car, Electric Vehicle Plant in Indonesia

Posted: July 2, 2019

 

Hyundai Motors will invest Rp40tr (USD2.8bn) in Indonesia as part of the automaker’s strategy to make the country a car export hubs and manufacture electric vehicles. Airlangga Hartarto, industry minister has said that the automaker will commence manufacturing in 2021 with a target to produce between 70000 and 250000 vehicles annually which include sport utility vehicles, multipurpose vehicles, hatchbacks and sedans, as well as electric vehicles. The government is looking for foreign investment and is offering incentives to investors i.e. planning to cut corporate tax to bring the country’s rate on par with that of others in the region. Also, the automaker has chose Indonesia for EV manufacturing because of the availability of raw materials.

In 2018, Hyundai invested USD250m in Southeast Asian ride-hailing firm Grab, to manuafacture electric vehicles in the region. The automaker has planned to locate its plant in West Java. The government has proposed the Cirebon-Patimban-Kertajati triangle as a location for the factory and it plans to establish as a special economic zone. The region will come with special leeway for custom duties, while its closeness to the new Patimban Port, scheduled to start first-stage operation by the end of 2019, create the ideal conditions to become an export hub.

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