Jakarta. Chinese automaker BYD will start commercially producing electric vehicles (EVs) in Indonesia in 2026, according to senior minister Luhut Binsar Pandjaitan.

Luhut’s aide Septian Hario Seto recently returned from a business trip to China. In an Instagram update on Tuesday, Luhut said that Seto had brought some good news related to Chinese investment, particularly on the long-awaited BYD. Luhut claimed BYD planned on holding the groundbreaking ceremony of its manufacturing plant in Indonesia this July. The minister, however, did not say in which part of the country this plant would be.

“BYD has shown great enthusiasm about investing in Indonesia. The goal is to have [BYD’s] manufacturing plant begin commercial production in the country in early 2026,” Luhut wrote in the post’s caption.

Earlier this year, Chief Economic Affairs Minister Airlangga Hartarto revealed BYD’s plans to invest $1.3 billion in a manufacturing plant in Indonesia. This facility is set to have an annual production capacity of 150,000 units. BYD also not long ago introduced 3 of its electric car models --Seal, Atto 3, and Dolphin-- to the Indonesian market. 

As BYD’s investment takes shape, Luhut also talked of the need for Indonesia to build its charging ecosystem. According to Luhut, the ministries and government bodies need to make sure that there are charging stations available across the archipelago. 

China is Indonesia’s second-largest source of foreign direct investment (FDI). Indonesia registered $7.4 billion worth of FDI throughout 2023, government data showed.

Add as a preferred source on Google +