Hyundai to Open Manufacturing Facility in Indonesia

Korean car brand Hyundai will soon to put an manufacturing plant in Indonesia.

This as Hyundai Motor Company has entered into a memorandum of understanding (MOU) with the Indonesian government to build a first manufacturing plant there.

Mainly, the decision to create a plant in Indonesia is to easily cater to the ASEAN market, thereby ensuring future growth engines to help the business combat slowing demand in the global automotive market.

Covering 77.6 hectares in Kota Deltamas (City of Deltamas),the manufacturing plant is within an integrated industrial, commercial and residential district in the eastern outskirts of Jakarta.

The official MOU signing ceremony was held at the Hyundai Motor plant in Ulsan, South Korea, the world's single biggest integrated vehicle plant.

Gracing the event were Indonesian President Joko Widodo;Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan; Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto; Chairman of Indonesian Investment Coordinating Board (BKPM) Bahlil Lahadalia; Hyundai Motor Group Executive Vice Chairman Euisun Chung and Hyundai Motor Company President and CEO Wonhee Lee.

“The establishment of Hyundai Motor’s manufacturing plant in Indonesia has been made possible thanks to the continuous cooperation and support from the Indonesian government,” Chung said.

“Hyundai will continue to listen actively and respond to the Indonesian government's expectations and policies regarding eco-friendly vehicles, while continuously contributing to the ASEAN community.”

An investment of USD 1.55 billion until 2030, the new facility will break ground in next month and is expected to begin commercial production in the second half of 2021.

The said manufacturing plant is said to create 150,000 units per year and will eventually be able to produce approximately 250,000 vehicles annually when it reaches full capacity.

Hyundai plans to produce compact SUV, compact MPV, and sedan models specifically designed for customers in the South East Asian market at the new Indonesian plant, which will incorporate facilities for stamping, welding, painting and assembly.

The company is also currently exploring the production of ASEAN-specific electric vehicles (EV) in its Indonesian plant.

Hyundai is committed to helping nurture Indonesia's EV ecosystem, contributing to its people's quality of life through its leadership in clean mobility technologies. Hyundai, together with sister company Kia Motors Corporation, aims to make Hyundai Motor Group the world's third-biggest EV manufacturer in the world by 2025.

More than 23,000 new direct and indirect jobs are expected to be created with the Indonesian plant, becoming one of the biggest automotive employers in the Kota Deltamas district.

The plant is anticipated to make an economic contribution worth more than USD 20 billion to the Indonesian economy over its first decade.


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