Indonesia May Inspect BYD's Subang Plant Over Local Hiring Dispute
Jakarta. Industry Minister Muhammad Sarmuji has said the government may conduct a field inspection of Chinese electric vehicle maker BYD's manufacturing project in Subang, West Java, following a dispute over demands for greater employment opportunities for local residents.
Sarmuji said resolving the issue would require coordination beyond the Industry Ministry, with the government potentially visiting the project site to help reconcile the interests of the company and the surrounding community.
“Of course, resolving this issue is not solely the responsibility of the Industry Ministry. We will look into it, and if necessary, we will visit the site with other government agencies,” Sarmuji told reporters in Jakarta on Friday.
He said the dispute appeared to stem partly from differing perceptions between the company and local residents over employment opportunities.
While the company might believe it had fulfilled its local hiring obligations, residents could still feel that the number of jobs available to them was insufficient, he said.
“There are sometimes different perspectives between industry and the community. The industry may feel it has done enough, while the community believes it is not sufficient,” Sarmuji said.
He called for better communication and a common understanding between the company and residents to prevent similar disputes from recurring.
The issue has drawn attention amid demands from local community organizations for BYD to prioritize workers from the area surrounding its investment project.
BYD inaugurated its vehicle assembly plant in Subang on Sept. 3, 2026, with an annual production capacity of 150,000 vehicles. The facility employs more than 5,000 workers.
The investment is part of BYD's efforts to expand its presence in Southeast Asia's largest automotive market, where demand for electric vehicles has been growing.
Sales of BYD Group vehicles in the country reached more than 46,700 units in the January-September 2026 period. As of August 2026, BYD held a 37% share of Indonesia's electric vehicle market, making it the country's leading EV brand.
Electric vehicles accounted for less than 1% of Indonesia's car sales in 2022, but their share had climbed above 26% by 2026, reflecting the rapid adoption of battery-powered vehicles.
Data from the Indonesian Automotive Industry Association (Gaikindo) showed that total vehicle sales reached 679,020 units in the first nine months of 2026, with battery electric vehicles (BEVs) accounting for 16.8% of the total.
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