Biggest EV Producer BYD Plans Indonesian Factory: Competition Heats Up

Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan has announced that Build Your Dreams (BYD), a Chinese electric vehicle company, is set to invest in Indonesia. In a video uploaded on Instagram on Mar. 19, Luhut stated that BYD will commence groundbreaking for its plant in July 2024. "We are building its ecosystem. Now, we will ensure that all ministries and institutions install electric chargers," he said.

Septian Hario Seto, the Coordinating Maritime Affairs and Investment Ministry's Deputy for Investment and Mining Coordination, stated that they have already met with representatives from BYD in China. According to him, one of the agendas in the meeting with BYD was to discuss the finalization of the plant's construction in Indonesia. "BYD will announce the location of their plant. The target is for the plant to start commercial production in early 2026," he said.

In contrast to Luhut and Seto, Investment Minister Bahlil Lahadalia said BYD will commence groundbreaking for its EV plant in April 2024. According to Bahlil, BYD has been marketing its products while enjoying incentives, such as the exemption of import duties for Completely Built-Up (CBU) units and luxury goods tax (PPnBM) discounts as stipulated in Presidential Regulation No. 79/2023.