Starting in 2024, a European Brand Will Build an Electric Car Factory in Indonesia

Hyundai and LG Build Electric Car Battery Factory in Indonesia
Electric Car Factory

The Ministry of Industry (Kemenperin) stated that three potential investors will develop electric cars in Indonesia, one of which is from a European brand. This European brand will build an electric car factory in Indonesia in 2024.

The Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry (Kemenperin) Taufiek Bawazier revealed that the European brand will start building its electric car factory this year while production will take place in 2024.

Taufiek has not revealed the identity of the European brand, but the suspicion is narrowed to Volkswagen, from Germany.

This was reinforced by the statement by the Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia in 2022 who stated that Volkswagen’s investment would soon enter Indonesia, but at that time it was stated that it needed electric vehicle batteries.

Bahlil has also met with VW Chief Procurement Officer Jorg Teichmann at the Ministry of Investment/BKPM Office. The meeting was held in order to discuss the development of VW’s investment plan in Indonesia.

Taufiek further explained that Indonesia will also have other investors for electric cars from China and Japan.

It’s just not mentioned the identity of each brand.

“Right now, but I can’t talk about it yet, later if we talk about it, it will (not happen),” he said.

Based on Taufiek’s statement, it is suspected that the Chinese brand that will become a new investor regarding electric cars in Indonesia is BYD.

This refers to the statement by Luhut Binsar Pandjaitan, Coordinating Minister for Maritime Affairs and Investment in January 2023 which explained ‘all the world’s major electric car manufacturers will enter Indonesia’, one of which is BYD.

As previously reported, the government is still reviewing requests from some manufacturers regarding the exemption of 0 percent import duty for fully built-up (CBU) electric cars.

The Minister of Industry (Menperin) Agus Gumiwang emphasized that all policies related to CBU imports would be directed at strengthening the domestic industrial structure.

Nevertheless, Agus was reluctant to explain further about the direction of the government’s policy following the request and proposal for the exemption of CBU import duty for the stunning car.