Hyundai to establish Indonesian manufacturing plant
Hyundai Motor Company announced it has entered into a memorandum of understanding (MOU) with the Indonesian government to build its first manufacturing plant in the country.
The company’s decision to invest in Indonesia will support its growth into new ASEAN markets, securing future growth engines to help the business combat slowing demand in the global automotive market.
The state-of-the-art manufacturing plant will be located on an 8.35 million-square-foot site in Kota Deltamas (City of Deltamas), an integrated industrial, commercial and residential district in the eastern outskirts of Jakarta, capital of the fourth-most-populous-nation in the world.
The official MOU signing ceremony was held at the Hyundai Motor plant in Ulsan, South Korea, the world’s single biggest integrated vehicle plant. Officials in attendance included: President Joko Widodo of Indonesia; Luhut Binsar Pandjaitan, coordinating minister for maritime affairs and investment of Indonesia; Airlangga Hartarto, coordinating minister for economic affairs of Indonesia; Bahlil Lahadalia, chairman of Indonesian Investment Coordinating Board (BKPM); Euisun Chung, executive vice chairman of Hyundai Motor Group and Wonhee Lee, president and CEO of Hyundai Motor Company.
“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,” said Chung. “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.”
The Indonesian plant will represent an investment of approximately $1.55bn until 2030, including product development and operation costs. The new facility will break ground in December this year and is expected to begin commercial production in the second half of 2021 with an annual capacity of 150,000 units. The plant will eventually be able to build approximately 250,000 vehicles annually when it reaches full capacity.