Subang Smartpolitan Sambut BYD, First Largest Tenant Of Electric Vehicle Manufacturing
JAKARTA - Subang Smartpolitan Green, Smart and Sustainable City, an integrated independent city for industrial estates and commercials in Indonesia is proud to welcome BYD, one of the global pioneers in the electric vehicle industry (EV), as its newest tenant.
The establishment of an EV factory by BYD in Subang Smartpolitan marks an important step in encouraging sustainable mobility in Indonesia and the Southeast Asia region.
"We are very pleased to welcome BYD in Subang Smartpolitan. The presence of BYD in Subang Smartpolitan is clear evidence of the attractiveness of our region as the center of industry at the forefront, especially in the automotive sector. In line with the company's main vision of 'Building a Better Indonesia', we are optimistic that this achievement will encourage economic growth and the transition to clean energy," said Abednego Purnomo as VP Sales, Marketing & Tenant Relations Subang Smartpolitan, in his statement, Tuesday 30 April.
Choosing Subang Smartpolitan as the factory's location, BYD became the first largest tenant in the region by occupying an area of more than 108 hectares. This marks the monumental achievement for Subang Smartpolitan, especially in the sale of industrial land.
BYD's big investment in Subang Smartpolitan is predicted to be a significant catalyst for economic growth in Indonesia. This EV plant will not only create thousands of new jobs, but also increase technology transfer and expertise in EV manufacturing. This will encourage the growth of the supporting industry in the EV sector, even opening up new opportunities for local companies to engage in the global supply chain EV.
Abednego expressed his belief that BYD's presence would significantly support the development of the EV industry in Indonesia.
"More than that, we are optimistic that this will attract further investment into Indonesia, opening gates for more global companies to establish their manufacturing base here. Then this will also have a positive impact on supply chain companies that already exist in Indonesia, where they can participate in completing the BYD supply chain," he said.
Abednego's optimization was strengthened by the high interest of foreign investors in the EV industry in Indonesia.
"We can also convey that we are currently handling a lot of inquiry from related industries and most of them come from Chinese countries. This shows investor confidence in the huge potential of the EV industry in Indonesia," he explained.
BYD plans to build a comprehensive EV ecosystem in Subang Smartpolitan, including research and development centers and training facilities equipped with the latest technology that is energy efficient and environmentally friendly.
The handover of land between Subang Smartpolitan and BYD will be carried out in August 2024. BYD plans to carry out a gradual construction operation and is expected to start operating in January 2026.
"Through various assessments, BYD has determined that the Subang Smartpolitan industrial area is suitable as a location for the development of the EV BYD industry in Indonesia. This industrial area meets our criteria in terms of size, distance, environment, and infrastructure needs, so we are sure that the facilities to be built will be able to encourage the growth of the Indonesian automotive industry and the transition to clean energy and support the economy, especially in the surrounding area," said Eagle Zhao, President Director of PT BYD Motor Indonesia.
BYD's global dominance is undeniable. In 2023, BYD surpassed other EV brands as the world's leading EV producers by number of shipments, demonstrating the production and attractiveness of its consumers. This achievement highlights the potential of BYD to disrupt the global EV landscape, particularly in markets that seek affordable and reliable electric transportation solutions.
Therefore, the growth of the electric vehicle market in Indonesia with sales almost tripled in 2023, presents a significant opportunity for BYD. With its various models and established presence in the public transportation sector, BYD is in the right position to achieve a fairly large market share.
BYD will set up a factory in the Phase 2 Subang Smartpolitan area, precisely in the north of the area. This strategic location will facilitate access to and from the factory, with the main toll exit from the Cikopo-Palimanan (Cipali) Toll Road at KM 89 to Subang Smartpolitan which will soon be present.
Industrial areas that are integrated with various national strategic infrastructures are one of the reasons BYD chose Subang Smartpolitan as its investment destination. Such as the Patimban Access Toll Road which is directly connected to Patimban Port, Kertajati International Airport, and the Trans Java Toll Road which connects to the capital city of Jakarta, Bandung and other cities in West Java and Central Java.
Subang Smartpolitan and BYD are both committed to promoting sustainable business practices. The EV BYD plant will implement the latest energy-efficient and environmentally friendly technology, where Subang Smartpolitan itself is developing smart infrastructure to support the sustainability of tenant businesses.
BYD's arrival at Subang Smartpolitan marks a new era of mobility in Indonesia. With a shared commitment to innovation, encouraging sustainability, and economic growth, Subang Smartpolitan and BYD are ready to lead the transition to a smarter and more sustainable future.