China’s BYD (Build Your Dreams), the world’s largest maker of electric vehicles (EVs), will invest US$1.3 billion in Indonesia, including in a production facility, according to a senior government official.
The manufacturing plant will have a capacity of 150,000 units, Indonesia’s Coordinating Economic Minister Airlangga Hartarto said in Jakarta on Thursday, citing talks with company executives. He did not give further details in the comments he made at a BYD event to mark the firm’s entry into the Indonesian market. It’s just launched three EV models: SEAL, Atto 3 and Dolphin.
Eagle Zhao, president director PT BYD Motor Indonesia, said the company is on track to start building its manufacturing facility later this year and is also targeting a sales network of as many as 50 locations in the country by the end of 2024. He didn’t comment on the value of the investment.
A Shenzhen-based BYD spokesperson declined to comment on the company’s Indonesian investment plans.
Indonesia is wooing global EV makers to build facilities in the country, as part of President Joko Widodo’s push to derive more added value from its rich nickel reserves, a key ingredient in batteries. The government recently passed tax cuts for EV makers committed to ramping up domestic production. Vietnam’s VinFast Auto Ltd also plans to build an Indonesian facility.
A production facility in Indonesia would bolster BYD’s presence in Southeast Asia. It’s nearing completion of a factory in Thailand and has committed to one in Vietnam. The company is also looking beyond Asia, recently signing up Hungary for its first European factory, which follows its first in South America by way of Brazil.