BYD’s Investment in Indonesia: Coordinating Minister Luhut Binsar Pandjaitan Provides Updates

BYD’s Investment in Indonesia: Coordinating Minister Luhut Binsar Pandjaitan Provides Updates


Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan conveyed the latest news regarding BYD’s investment in Indonesia. According to Luhut, the electric car manufacturer from China will soon start its business in Indonesia.

Luhut emphasized that BYD will assemble locally or completely knock down (CKD) its electric cars in Indonesia. However, before the factory is completed, they may start their business with a completely built up (CBU) scheme or complete imports from their country of origin.

“Yes (BYD will be CKD), so they will be as long as possible construction (factory), may import several lots (vehicles). “There is a quota,” said Luhut Binsar Pandjaitan when met at the 2023 IKAXA National Seminar which took place in Senayan, Central Jakarta, Thursday (14/9).

BYD will enter Indonesia. Photo: Doc. BYD

Luhut emphasized that currently his party is just waiting for the issuance of regulations regarding the exemption from importing electric vehicles. He hopes it can be completed this month.

“BYD, we hope that the regulations will come out this month. I think, God willing, they will invest in us,” he explained.

Previously, the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita emphasized that the import tax exemption for electric cars only applies to manufacturers who have committed to building factories in Indonesia.

“We are not opening up EV imports, we are giving incentives only to potential investors. So if you don’t invest here, the import duties will be the same, we won’t relax them,” said Agus, some time ago.

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“So the only incentives given are producers who submit and provide their investment plans, then we will provide incentives with, for example, relaxation of import duties until 2026,” he added.

Indonesian Minister of Maritime Affairs and Fisheries Luhut B. Pandjaitan is exploring cooperation to realize electric cars in Indonesia. This time Luhut visited the electric car giant BYD in Shenzhen. Photo: doc. Ministry of Maritime Affairs and Fisheries

Last July, Agus met BYD officials while visiting China to discuss the potential for investment in electric vehicles. The government has also signed an MoU in May 2023 to explore investment between Indonesia and China, including regarding electric cars.

BYD is not a foreign brand in Indonesia. Their vehicles are widely used by BlueBird and TransJakarta.

Watch the video “Luhut about being chairman of Golkar: if he wants to support him!”


2023-09-14 07:36:45
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