Indonesia Welcomes Hozon Energy's Investment in Electric Vehicle Production

Jakarta, INTI – The Indonesian government has expressed its appreciation to Chinese automotive company Hozon Energy Automobile Co., Ltd. (Hozon) for its investment under PT Neta Auto Manufacturing Indonesia. This investment supports the acceleration of electric vehicle (EV) production in Indonesia. The statement was made by Minister of Industry Agus Gumiwang Kartasasmita during his meeting with Hozon's board of directors.

“We certainly hope that Neta's production activities can be increased in the future. Moreover, Neta's market strategy involves exporting 50 percent of its total production, and the company has already exported to 40 countries globally,” said the Minister in Beijing on Wednesday (June 12).

The Minister expressed his interest in encouraging Neta to grow together in building a globally competitive automotive industry. “The government has various incentive facilities that Neta can utilize, making Indonesia a production base and export hub, especially for right-hand drive vehicles,” he added.

The Indonesian government is also serious about accelerating the development and expansion of the EV ecosystem. “We aim for the EV population in Indonesia to reach 600,000 units by 2030. So, if Neta plans to produce 6,000 cars per year, we are confident that the domestic market absorption in Indonesia will be very good,” he stated.

There is also a significant opportunity to develop the automotive industry in Indonesia, given that the car ownership ratio is currently around 99 units per 1,000 people. In comparison, competitor countries like Malaysia have a ratio of 490 units per 1,000 people, and Thailand has 275 units per 1,000 people.

“However, this low figure represents an opportunity, as it indicates significant growth potential. When considering the total population, Neta can view Indonesia as an export center,” the Minister explained.

The export markets for electric vehicles that Neta should explore include ASEAN and Oceania countries. “We see opportunities to export to Australia, as it is a right-hand drive country. Economically, this could be advantageous, and we hope that production can be based in Indonesia,” Agus noted.

The Ministry of Industry also hopes that Neta conducts comprehensive market research on Indonesian consumer preferences, ensuring that the products align with the needs of the local market. Additionally, the Ministry encourages Neta to accelerate the production lineup of other EV models in Indonesia.

At the same event, Vice President of Neta Auto & President of the Overseas Business Department Mr. Zhou Jiangmeng expressed gratitude for the meeting with Minister Agus and his team. He acknowledged this as tangible support and assistance from the Indonesian government.