Yadea to Invest $150 Million in Indonesian Factory, Prioritizing Local Workforce
Karawang, West Java – Chinese electric vehicle manufacturer Yadea is poised to significantly impact the Indonesian economy wiht a $150 million investment in a new production facility in Karawang, West Java. the company’s strategic initiative centers on prioritizing the recruitment of local talent, aiming for over 80 percent Indonesian depiction within its workforce.
Strategic Investment in local Talent
The new factory, slated to begin operations in 2026, is projected to create thousands of jobs for Indonesian workers. Yadea’s Senior Vice CEO, Wang Jiazhong, emphasized the company’s commitment to building a robust local presence. “We are building six integrated capabilities; operational, design, quality, supply chain, components, and talents, with 80-90% of local employees,” Wang stated during a recent declaration in Wuxi, Jiangsu, China. [[3]]
This approach mirrors Yadea’s successful model at its Wuxi factory, where local residents are prioritized for employment. The company views this as a crucial step in contributing to the economic well-being of the communities where it operates. “For example in Jinzhai, Anhui, all of them are Jinzhai people,” Wang explained. “They are adequate, for Indonesia too, we hope that local people.”
Did You Know?
Yadea is already the world’s largest manufacturer of electric kick scooters and electric bikes.[[2]]
Building a Global Supply Chain Hub
The Indonesian factory will serve as a central hub for Yadea’s global supply chain, supporting both domestic and international exports. The company anticipates that a notable portion of its workforce will reside within a 20-kilometer radius of the new headquarters, fostering a strong connection between the company and the local community. “Whereas if in Indonesia is bigger, about 20 kilometers from the new headquarter will be able to join with Yadea, the full target will all be operated full by indonesians,” Wang added.
Commitment to Domestic Content
Yadea has set an ambitious goal of achieving 80 percent domestic content level (TKDN) within the next three years.This will be accomplished through phased implementation, focusing on local research and development, and the sourcing of core components, including batteries, driving motors, frames, injection mold sections, and seats. This commitment aligns with Indonesia’s national strategy to strengthen its manufacturing sector and reduce reliance on imports.
Investment Details
| Metric | Value |
|---|---|
| Factory Location | Karawang, West Java, Indonesia |
| Operational Start Date | 2026 |
| Total Investment | US $150 million (Rp 2.4 trillion) |
| Factory Area | Approximately 270,000 square meters |
| Local workforce Target | >80% |
| Domestic Content Level (TKDN) Target | 80% (within 3 years) |
Pro Tip: Investing in local talent and supply chains can significantly reduce production costs and improve responsiveness to market demands.
The factory’s substantial area of approximately 270,000 square meters underscores the scale of Yadea’s commitment to the Indonesian market. This investment is expected to stimulate economic growth in the Karawang region and beyond. what impact will this investment have on Indonesia’s electric vehicle ecosystem? And how will Yadea balance its global supply chain needs with its commitment to local sourcing?
The Rise of Electric Vehicles in Indonesia
Indonesia is rapidly emerging as a key player in the global electric vehicle market, driven by abundant natural resources – particularly nickel, a crucial component in battery production – and a growing domestic demand for lasting transportation solutions. The Indonesian government has implemented various incentives to attract foreign investment in the EV sector,including tax breaks and streamlined regulatory processes. This has lead to a surge in interest from international manufacturers like Yadea,seeking to establish a foothold in this dynamic market. The country’s large population and increasing urbanization further contribute to the potential for widespread EV adoption.
Frequently Asked Questions about Yadea’s Indonesian investment
- What is Yadea’s primary goal in investing in Indonesia? Yadea aims to establish a global supply chain hub and contribute to the economic development of the Karawang region through local job creation and sourcing.
- When is the Yadea factory expected to be fully operational? The factory is slated to begin full operations in 2026.
- What percentage of the workforce will be indonesian? Yadea is targeting over 80% Indonesian representation within its workforce.
- What is the importance of the 80% domestic content level (TKDN) target? Achieving this target will strengthen Indonesia’s manufacturing sector and reduce reliance on imported components.
- How large is the investment in the new factory? The total investment is US $150 million, equivalent to approximately Rp 2.4 trillion.
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