Minister of Industry (Menperin) Agus Gumiwang Kartasasmita revealed that the land for BYD and VinFast factories in Subang, West Java, is free from problems, including from agricultural land.
"Actually, that's not the story (on agricultural land), they are already industrial areas," Agus said when met by reporters after the 2025 2nd Annual Indonesia Green Industry Summit (AIGIS) at JCC, Wednesday, August 20.
Therefore, Agus ensured that BYD and VinFast were able to build their factories in the designated place.
"If they already have industrial estate status, it means they have no more problems," he said.
Previously, Minister of Agriculture (Mentan) Andi Amran Sulaiman emphasized that every conversion of agricultural land for investment purposes must be accompanied by multiple-fold land replacement from the transferred area. This step is to ensure that farmers continue to own decent cultivated land and national food security is not disrupted.
Amran made this statement when receiving an audience with the Governor of West Java (Jabar) Dedi Mulyadi at the Ministry of Agriculture office, Jakarta, Wednesday, August 13.
During the meeting, Dedi reported plans to build a car factory in Subang Regency with an investment value of around Rp33 trillion.
"The Governor said that in Subang a car factory will be built with an investment value of around Rp. 33 trillion. Incidentally, some of what is planned is rice fields. We will resolve this problem together so that investment continues and jobs are open," he said in his official statement.
"However, if there is a change in the function of agricultural land, we emphasize that the land must be replaced at least three times the area of land diverted so that farmers still have proper replacement land," he continued.
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Meanwhile, West Java Governor Dedi Mulyadi explained that his party brought the three main agendas to the meeting, namely reforestation of PTPN land, discussion of Vinfast and BYD investments in Subang and adjustment of LP2B data with field conditions.
"Earlier it was stated that in the area there was an LP2B land, but in fact the rice fields were no longer there. But according to data, the LP2B is still on the West Java spatial planning map. So, today we want to make an alignment so that investment runs and agricultural land is replaced," he said.
Dedi emphasized that the West Java Regional Government and the Ministry of Agriculture agreed to replace the affected LP2B land with a three-fold area. "We agreed to carry out strategic recommendations from the Minister (Andi Amran) to replace the affected LP2B land with a three-fold area. This is part of the commitment to maintaining food security, supporting investment and growing the regional economy," he concluded.
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