Site for BYD's Indonesia plant confirmed

BYD Indonesia factory site is set, yes, April 30, BYD Indonesia head Zhao Yue announced that BYD Indonesia factory site in Smartpolitan Industrial Park, covers an area of 108 hectares, with a total investment of 1.3 billion U.S. dollars.

Smartpolitan is located in the Subang area of the Javan Industrial Corridor, invested by Surya Cipta Developers, approximately 100 kilometers east of Jakarta, 55 kilometers from Patimban Port, and 80 kilometers from Kertajati International Airport, and is expected to complete the delivery of the land from the developer to BYD and begin construction in August 2024, with construction commencing in 2026 January to start production.

On January 18, 2024, BYD reintroduced three pure electric models Yuan PLUS, Dolphin and Seal in the Indonesian market. And back in December 2023, in order to promote the development of Indonesia's EV industry, the President of Indonesia signed Decree 79 to further liberalize the import policy targeting EVs.

First, for automobile manufacturers that have already established factories in Indonesia, import of complete electric vehicles will be exempted from import duty of 50% and import tax on luxury goods of 10%, and import value-added tax (VAT) will be reduced from 11% to 1%.

Secondly, for automobile manufacturers like BYD, which are preparing to build factories, the import of complete electric vehicles will be given a two-year tax exemption, and the same exemption will be given to the import tariff of 50% and the import tax of 10% for luxury goods, but the import VAT will still be 11%. At the same time, the Indonesian government requires that the number of vehicles produced by these manufacturers must be able to offset the number of imports after they start production in the local area.

Currently, BYD has already established its presence in Indonesia, including Wuling, Dongfeng Xiaokang, Nezha and Hyundai. Nickel is one of the main raw materials for new energy batteries, and with Indonesia's advantage of being the world's largest producer of nickel, the Indonesian government hopes to turn Indonesia into the center of the entire ASEAN electric vehicle industry, covering the upstream raw materials for batteries, battery production, and downstream electric vehicle production.