AsianFin -- Indonesia’s Ministry of Industry announced that six electric vehicle (EV) manufacturers plan to invest an additional 150 trillion rupiah (approximately $10 billion) into the country, signaling a major push to expand the Southeast Asian EV market.
The six companies include BYD Auto Indonesia, Vinfast Automobile Indonesia, Geely Motor Indonesia, Era Industri Otomotif (Xpeng), National Assemblers (producing Aion, Citroën, Maxus, and Volkswagen), and Inchcape Indomobil Energi Baru (GWM Ora). These firms have received import incentives for fully built-up (CBU) battery electric vehicles (BEVs) to meet Indonesia’s domestic content requirements, known as TKDN.
Specifically, Geely and Era Industri Otomotif plan to collaborate with local assembly plants for vehicle production, while National Assemblers and Inchcape Indomobil Energi Baru will focus on expanding existing capacity. Meanwhile, BYD and Vinfast are set to construct new factories to support production growth.
“The additional investment demonstrates our commitment to Indonesia as a strategic hub for EV manufacturing and the country’s broader ambitions to boost local production and adoption of electric vehicles,” said the Ministry of Industry in a statement.
The move is part of Indonesia’s ongoing efforts to attract foreign investment into its EV sector, incentivize local production, and build a robust ecosystem for electric mobility, including battery production and vehicle assembly. With Southeast Asia’s EV market projected to grow rapidly over the next decade, Indonesia aims to position itself as a regional manufacturing hub.
BYD, Geely, and Xpeng, all major Chinese EV players, have been expanding aggressively in Southeast Asia, leveraging favorable policies and growing consumer demand. Vinfast, the Vietnamese EV maker, is also scaling up production capacity in the region.
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