This is in accordance with the government's objective to position Indonesia as a production base and not only the market.Jakarta (ANTARA) - Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan welcomed South Korea's Hyundai Motor Company to invest in Indonesia as its production base after negotiations spanning a year.
"This is in accordance with the government's target to position Indonesia as a production base and not solely the market," he noted in a statement received here on Wednesday.
The company will soon establish a motor vehicle factory worth US$1.55 billion in an industrial area of Cikarang, Bekasi, West Java, intended to be the first manufacturing center based in the Southeast Asian region.
The production process for commercial purposes is projected to kick off in the second half of 2021, with capacity of 150 thousand units, while its full production capacity is targeted for 250 thousand vehicles.
Hyundai is also setting its sights on the opportunity to manufacture electric vehicles in tune with its commitment to support Indonesia to create an ecosystem of clean mobility.
"We have already applied all regulations for electric vehicle investment. It is not only for Hyundai since we want the diversification of electric car producers, so no single company dominated the market," he pointed out.
As the largest market for car products in the ASEAN, Indonesia recorded sales to the tune of 1.15 million units by 2018, which is viewed as a potential market.
ASEAN countries, including Indonesia, Thailand, Malaysia, Vietnam, and Singapore, are expected to create an automotive market of approximately 4.49 million units by 2026, growing from 3.16 million units in 2017.
Related news: President Jokowi, leaders of Hyundai Motors discuss investment Related news: New SUV of Hyundai to soon be unveiled in Indonesia
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Translator: Ade Irma Junida, Suwanti
Editor: Suharto
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