EV Manufacturers Take Interest in Indonesian Industrial Zones

Global automotive manufacturers are increasingly investing in the development of Indonesia's electric vehicle (EV) ecosystem. Recently, PT BYD Motor Indonesia (BYD) announced its intention to use land in the Subang Smartpolitan industrial area owned by PT Surya Semesta Internusa Tbk (SSIA) to build an EV factory.

The BYD electric vehicle factory will be constructed in Phase 2 of the Subang Smartpolitan area, specifically in the northern part of the region. BYD will use an area of ​​more than 108 hectares to build EV production facilities there. The factory will eventually be able to produce 150,000 units of EVs annually.

BYD President Director Eagle Zhao said during the Periklindo Electric Vehicle Show (PEVS) 2024 on Apr. 30 that BYD's total investment in Indonesia has reached US$1 billion. He added that the Subang Smartpolitan industrial area is easily accessible via the Cikopo-Palimanan Toll Road KM 89, which is currently under development. It is also close to the Patimban Access Toll Road, which is directly connected to the Patimban Port, Kertajati Airport, and the Trans Java Toll Road that connect Jakarta, Bandung, as well as other regions in West and Central Java.

Subang Smartpolitan Vice President Sales, Marketing, & Tenant Relations Abednego Purnomo believes that BYD's presence will attract investment and open Indonesia for more global companies looking to establish manufacturing bases. This optimism is reinforced by high interest from foreign investors towards the national EV industry. Subang Smartpolitan is currently handling many inquiries from related industries, with the majority coming from China.

Before BYD, Hyundai Motor Company became a tenant in the Greenland International Industrial Park (GIIC) in Cikarang, West Java, which is owned by PT Puradelta Lestari (DMAS). There, Hyundai has established a car factory that has a production capacity of 150,000 units per year with an investment value of US$1.55 billion. GIIC also houses Wuling Motors to produce electric cars for the Indonesian market. Wuling has invested US$1.1 billion to build a factory with a production capacity of 120,000 units per year.