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Indonesia’s Automotive Sector to Thrive: BYD's Strategic Investment to Propel EV Industry and Local Component Growth

  Editorial INTI     30 hari yang lalu
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Jakarta, INTI - The Indonesian government, through the Ministry of Industry (Kemenperin), continues its strategic efforts to bolster the nation’s automotive industry, especially by enhancing the synergy between vehicle manufacturers and domestic component suppliers. In an effort to solidify this relationship, Kemenperin organized the "Business Matching for Increasing the Use of Domestic Automotive Components in the Global Supply Chain for Four-Wheeled Electric Vehicles (EVs)" event on October 15, 2024, in Jakarta. The event was co-hosted by the Coordinating Ministry for Maritime Affairs and Investment.

This collaborative event was designed to encourage partnerships between local component manufacturers and vehicle assemblers, allowing Indonesia’s component industry to penetrate the global supply chain.

"Strengthening Local Component Supply Chains"

According to Putu Juli Ardika, the Acting Director-General of Metal, Machinery, Transportation Equipment, and Electronics Industries (ILMATE), this collaboration is essential for driving the national automotive industry forward. “We hope this event can bridge the gap between vehicle assemblers and local suppliers, further integrating Indonesia's automotive component industry into the global supply chain,” said Ardika during his speech at the event's opening.

He added that Indonesia is becoming a key global production base for electric vehicles. Ardika emphasized the importance of the country’s role in meeting the growing demand for EVs worldwide, pointing to the major investment from BYD, a global EV manufacturer based in China. BYD is set to invest IDR 11.7 trillion in Indonesia, with plans to produce 150,000 electric vehicles annually.

"Building Indonesia’s Global Competitiveness in EVs"

BYD’s investment is seen as a significant vote of confidence in Indonesia’s market potential. This move also strengthens Indonesia’s position as a major hub for electric vehicle production in both regional and global markets. Following the construction of their factory and the commencement of EV sales in June 2024, BYD has received positive feedback from Indonesian consumers. By September 2024, the company had already sold 2,000 electric vehicles, demonstrating that their models are well-suited to the preferences of Indonesian consumers.

Ardika expressed optimism that this significant foreign investment would boost the domestic automotive component industry and facilitate technology transfer from BYD to local manufacturers. “This technology transfer will be crucial for upgrading the skills and competitiveness of Indonesia’s component industry, enabling it to compete in the Global Value Chain (GVC),” Ardika added.

"Encouraging Local Industry to Compete Globally"

As local component manufacturers enhance their technological capabilities, they are expected not only to meet domestic automotive needs but also to become significant players in the global supply chain, particularly in the fast-growing electric vehicle sector.

Ardika called on all parties, including government bodies, the industrial sector, and other stakeholders, to continue working together to support the growth of Indonesia’s automotive industry, particularly the electric vehicle segment. This collective effort will help Indonesia realize its vision of becoming a global leader in the automotive sector.

"BYD’s Strategic Expansion in Indonesia"

BYD’s Director of Administration, Andy Lin, highlighted the importance of Indonesia in the company’s global strategy. “Our decision to invest in Indonesia is a key part of our global expansion plan. We intend to establish Indonesia as the regional headquarters for the Asia-Pacific, with facilities for R&D, production, sales, after-sales support, and training,” Lin explained.

Lin also shared BYD’s plans to launch more electric vehicle models in Indonesia, including plug-in hybrid models (PHEVs). BYD will leverage Indonesia’s world-class manufacturing capabilities and its cutting-edge energy technology to drive the evolution of the country’s automotive supply chain.

The Business Matching event saw participation from 79 companies, with several one-on-one meetings held between PT BYD Indonesia and various industry groups, providing opportunities for collaboration and joint ventures.

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