Indonesia's rise as an EV hub

Indonesia's Electric Vehicle (EV) industry is rapidly growing, driven by government incentives and investment, boosting both adoption and manufacturing.

Authors

Vania Andini

Company	Remarks
Hyundai	Own facilities in Deltamas, Cikarang with maximum yearly production capacity of EVs up to 70,000 units.
Wuling	Own facilities in Deltamas. Cikarang with yearly production capacity of 120,000 units for both EV and non-EV cars.
Chery	Use existing facilities by PT HIM in Bekasi with approximate yearly capacity of 7,000 units.
Sokonindo (DFSK)	Own facilities in Modern Cikande, Tangerang with approximate yearly production capacity of 50,000 units.
beta	Use existing facilities by PT HIM in Bekasi with approximate yearly capacity of 27,000 units.
GAG AION	A new facility in Cikampek is set to open in 2025. It aims for 30,000 units produce annually.
BYD	A new facility in Subang Smartpolitan is set to open in 2026. It aims for 150,000 units produce annually, with a $1 billion investment.
Vinfast	A new facility in Subang is currently under construction. It aims for 50,000 units produce annually, with a $200 million investment.

Source: Four-wheeled EV Players in Indonesia, Public News, 2024

Attractive incentives offered by the Indonesian government have drawn significant investment in the EV sector, particularly from multinational companies establishing manufacturing and assembly operations. Currently, five car companies have operating plants in the country. South Korea's Hyundai and China's Wuling led the way, both launching their operations in 2022. During that same year, two more Chinese firms, Chery and DFSK, entered the market. Neta from China, began assembly operations in 2024 through PT HIM (Handal Indonesia Motor), which also manages Chery's assembly. Recent entrants include GAC AION and VinFast, which are set to begin operations in 2025, and BYD is scheduled to start in early 2026. Several battery companies and manufacturers have shown interest in investing in Indonesia, with some already present. For example, CATL and Foxconn have announced plans to invest, while Hyundai Motor Group and LG Energy Solution already have manufacturing facilities in the country.

In conclusion, the EV boom in Indonesia presents significant opportunities for the real estate market, particularly within the logistics and industrial sectors. As the EV industry evolves, real estate developers and investors should closely monitor these developments to capitalise on the emerging opportunities. The growth of EV manufacturing, battery production, and related industries is likely to drive demand for industrial land, warehouses, and showroom spaces. Additionally, EV charging facilities are becoming valuable amenities within office, residential, and retail properties.

Indonesia's rise as an EV hub

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