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JAKARTA - The government is currently trying to accelerate the growth of electric vehicles in Indonesia by inviting several manufacturers to assemble their electric vehicles domestically.

In addition to reducing imports, locally produced electric vehicles also receive incentives from the government by meeting the requirements for the Domestic Component Level (TKDN).

The government also wants to make Indonesia a base for exporting electric vehicles abroad with domestically made vehicles.

This was revealed by the Minister of Trade (Mendag), Zulkifli Hasan, in a meeting with Hyundai Indonesia. He hopes that Hyundai will become one of the brands that play a role in the export of battery-based electric cars abroad.

This is supported by abundant resources in Indonesia and Hyundai's commitment to investing 1.5 billion US dollars or around Rp. 22.5 trillion.

"I hope that PT Hyundai Motor Manufacturing Indonesia (HMMI) does not stop here and continues to develop its investment through the expansion of industrial capacity in Indonesia," Zulkifli said in an official statement on Tuesday, July 11.

During his visit to the Hyundai factory in Cikarang, Bekasi, West Java, Zulkifli also provided support to PT HMMI as Hyundai's car assembly factory in Indonesia to achieve this goal.

He also encouraged Hyundai to continue to improve its performance by prioritizing partnerships with local entrepreneurs, especially MSMEs, to optimize the Domestic Component Level (TKDN).

"We can continue to work together and collaborate to create a healthy and competitive industry in the global market," added Zulkifli.

In an effort to accelerate the growth of electric vehicles, the President of Hyundai Motor Asia Pacific, Lee Young Tack, announced an investment of 1.5 billion US dollars for the construction of two battery factories in Indonesia.

The first battery factory is under construction in Cikarang, West Java, with an investment of US$60 million or around Rp900 billion. The second battery factory was built in Cikarang, West Java, through a collaboration between Hyundai and LG Energy Solution Ltd.

Since last year, the first mass production in Indonesia has been launched, including Creta and MPV Stargazer, with a special emphasis on Ioniq 5. Ioniq 5, which was launched in March 2022, was the first locally produced electric car in Indonesia.


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