Efforts to Hinder Hyundai’s Investment in Indonesia Revealed by Minister of Investment

Jakarta –

The Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia opened up about efforts to hinder Hyundai’s investment in 2019. According to Bahli, the obstacle came from a country, but he was reluctant to reveal his identity.

“So, when we wanted to sign this (the Hyundai project), many countries didn’t want Hyundai to enter, this electric car, I have to say. I didn’t say which country, but there are countries that don’t want these goods to enter,” Bahlil said at the event. Maekyung Indonesia Forum on the 50th Anniversary of Diplomatic Relations Between Korea and Indonesia in Jakarta, quoted from Between Tuesday (16/5/2023).

Bahlil also explained that Hyundai’s investment of US$ 1.55 billion began with the signing of the MoU on an investment plan in 2019. The signing was also witnessed by President Joko Widodo and Executive Vice Chairman of Hyundai Motor Group Chung Eui-sun.

In its commitment at that time, Hyundai in the first phase focused on investing in car factories and would export approximately 50 percent of its total production.

Furthermore, in the second phase, Hyundai focuses on electric car factories, transmission factories, research and development, training, and production. Hyundai production will be exported 70%.

Then in March 2022, the Hyundai factory in Cikarang, West Java has produced the Hyundai Ioniq 5 electric car.

Bahlil added that when signing the MoU, many parties doubted the realization of Hyundai’s investment. Including plans for the production of electric cars. Not to mention the condition of the COVID-19 pandemic that hit starting in 2020.

“I signed the Hyundai at that time in 2019 for an electric car, at that time many people said it was impossible for this to happen. Especially after the signature was immediately completed with COVID-19. We conveyed at that time to President Moon, the previous president, that we were committed to overseeing investment even though it is COVID-19 and we will continue,” he said.

“Thank God, now Hyundai products can be used by Indonesians and Indonesians really love electric cars. Because of that love, now they line up for 6 months to 8 months to get a car in the showroom,” continued Bahlil.

(hns/hns)