BYD to invest in plant in Indonesia to start production by 2026, Minister Luhut confirms

Indonesia's Coordinating Minister for Maritime Affairs and Investment, Luhut, recently revealed that BYD, a leading Chinese electric vehicle manufacturer, is planning to launch investment activities in Indonesia in July 2024. The news was based on a report from the Coordinating Deputy Minister for Investment and Mining, who recently returned from a visit to China. Luhut claimed that BYD's factory building project is scheduled to start in July, and the progress of all this will be disclosed in detail in the future. He emphasized that in order to ensure the effective building of the ecosystem, the government will promote the formation of the EV ecosystem between Jakarta and Surabaya by ensuring that all relevant departments and agencies are well equipped with EV charging facilities. The government aims to motivate as many people as possible to adopt electric cars or motorcycles by implementing various incentives throughout the country.

Luhut also noted that BYD has shown strong interest in investing in Indonesia and plans to launch commercial production in the country by early 2026. He had previously made it clear that despite the fact that Tesla's investment has yet to materialize, the government is not going to wait around for it, as BYD's investment plans have already been finalized. BYD has officially committed to investing US$1.3 billion (about Rp 20 trillion) to build a production base in Indonesia. Luhut also mentioned that the government would be open to Elon Musk's Tesla if it chose to build a production plant in Indonesia. However, even if Tesla ultimately fails to set up a factory in Indonesia, it will not matter much to him.