Hyundai signs with the Indonesian government to build a local manufacturing plant
Hyundai Motor inaugurated Hyundai Motor Manufacturing Indonesia, its first factory in Southeast Asia, located in Deltamas industrial complex near Cikarang, Indonesia, 40 kilometers east of the capital city of Jakarta, on March 16.
The inauguration followed Hyundai’s signing of a Memorandum of Understanding (MOU) with the Indonesian government to build and operate a local manufacturing plant that will become Hyundai’s manufacturing center for Southeast Asian markets.
The ceremony was attended by President of the Republic of Indonesia Joko Widodo, Coordinating Minister of Maritime and Investment Luhut Binsar Panjaitan, Coordinating Minister of Economic Affairs Airlangga Hartarto, Minister of Investment Bahlil Lahadalia, Minister of Transportation Budi Karya, Minister of State-Owned Enterprises Erick Thohir, State Secretary Pratikno, Korean Ambassador to Indonesia Park Tae-sung, and Chairman of Hyundai Motor Group Chung Eui-sun.
Last December, Hyundai completed construction of the factory with an initial production capacity of 150,000 units. Hyundai plans to invest in the plant amount of around $1.55 billion and the production capacity is due to be increased to 250,000 units.
Hyundai Motor Manufacturing Indonesia exemplifies the company’s commitment to sustainable development and vision of ‘Progress for Humanity.’ This can be seen in the use of environmentally friendly technologies, such as solar panels that can meet part of the plant’s electrical needs. In addition, Hyundai plans to use environmentally friendly water-based paints in the vehicle painting process.
"Today, I inaugurate and launch Hyundai Motor Manufacturing Indonesia's plant and the first IONIQ 5 electric car produced in Indonesia," said Joko Widodo, President of the Republic of Indonesia. "I hope that this IONIQ 5 from Hyundai will become an important milestone in the development of Indonesia's electric vehicle ecosystem, and to further accelerate the electric car ecosystem that is more advance."
Meanwhile, Chairman Chung of Hyundai Motor, said, “Indonesia is a key hub for Hyundai Motor’s future mobility strategy. This plant will play a key role in the automotive industry and specifically in the field of electric vehicles. Moreover, Hyundai will keep contributing to the establishment of the electric vehicle ecosystem in Indonesia through the battery cell plant currently under construction. This will further help support Indonesia to play an important role in the global landscape.