South Korean legacy automaker Hyundai Motor Group doubles down its push in electric vehicles and hydrogen energy in Indonesia with a deepened partnership with the government.
Hyundai aims to be Southeast Asia’s EV leader
Hyundai Motor Group Executive Chair Chung Euisun recently traveled to Indonesia to meet with government officials for the potential expansion of their long-standing partnership, according to The Korea Times.
Apart from Executive Chair Euisun, Chief Executive Chang Jae-hoom and adviser Sung Kim were also present in the meeting with Indonesia’s Coordinating Minister for Economic Affairs.
According to Minister Airlangga Hartarto, the government is ramping up its electric vehicle development by creating a roadmap. It also provides enticing incentives to establish a strong domestic ecosystem.
“The Indonesian government is currently accelerating the development of EVs by preparing for an EV development roadmap and offering various relevant incentives so as to develop a complete EV ecosystem in Indonesia.”
Airlangga Hartarto, Coordinating Minister for Economic Affairs
Deal includes potential expansion of EV production capacity
As per the report, Hyundai aims to boost its annual electric vehicle production capacity in Indonesia to more than 250,000 units. The plan is apparently part of the South Korean automaker’s efforts to make the country its primary production hub in the Southeast Asian region.
Hyundai is already collaborating with the government to establish a solid electric vehicle ecosystem in the country.
Remarkably, Hyundai is currently the only electric automaker with a fully localized production system in Indonesia. The company’s local factory has started producing its flagship Hyundai IONIQ 5 EV.
Hyundai is also working with the Indonesian government to impose the company’s waste-to-hydrogen production solution there.
Hyundai officials’ visit to Indonesia is crucial to the automakers’ wider strategy to achieve additional growth prospects.
HLI Green Power JV
In 2021, Hyundai partnered with South Korean battery maker LG to form a joint venture in Indonesia to mass-produce electric vehicle battery cells.
The South Korean companies selected Indonesia as the location of the factory, considering that the country is currently the world’s largest producer of nickel. Nickel is among the most crucial minerals for batteries.
The following year, Hyundai launched a manufacturing plant in Bekasi, Indonesia. The company produces the Hyundai IONIQ 5 EV there.
Notably, Tesla has also expressed interest in investing in Indonesia. CEO Elon Musk recently went to Bali to launch its Starlink internet service there. At the time, Coordinating Investment Minister Luhut Pandjaitan proposed a Tesla Gigafactory in the country. Reports claim that the Tesla boss responded positively to the Minister’s idea.
