China’s BYD Will Build RM6.1 Billion Plant In Indonesia

BYD, a Chinese electric vehicle (EV) manufacturer, will build a $1.3 billion (RM6.13 billion) plant in Indonesia, Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto announced yesterday (18 January).

The factory will have a capacity of 150,000 units. In a video message, Hartarto welcomed BYD's plans, stating that the move "can strengthen the era of electric vehicles".

By the end of this year, BYD hopes to open up to 50 sales locations throughout Indonesia in addition to plans to build a manufacturing plant there.

After Thailand, Uzbekistan, Brazil, and Hungary, BYD will have five overseas EV plants when it opens its next one in Indonesia, according to Car News China, Jakarta Globe reported.
The government of Indonesia is considering additional incentives, like the removal of import tariffs and value-added tax, for businesses that invest in electric vehicle manufacturing.
As of July 2023, EV manufacturers, including BYD, Wuling Motors, and others, have announced plans to establish factories in Indonesia, according to Minister of Investment Bahlil Lahadalia.

Separately, BYD held an event at Taman Mini Indonesia Indah (IMII), on the southeast outskirts of Jakarta, the capital of Indonesia, to introduce its three new EV models to the Indonesian market: the BYD Seal, BYD Atto 3, and BYD Dolphin. Interest in Indonesia's EV market, in particular, has increased due to the country's vast nickel reserves, which are used to manufacture EV batteries. According to the US Geological Survey, the country has 21 million tonnes of nickel reserves, or approximately 22% of global reserves. VinFast, a Singaporean-Vietnamese EV maker, has promised to invest $200 million in an assembly plant in Indonesia by September 2023, taking into account the country's growing EV market.