Hyundai Motor to establish its first Indonesian manufacturing plant
Hyundai Motor Company entered into a memorandum of understanding 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 manufacturing plant will be located on an 77.6-hectare site in Kota Deltamas (City of Deltamas), an integrated industrial, commercial and residential district in the eastern outskirts of Jakarta.
The Indonesian plant will represent an investment of approximately USD 1.55 billion 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.
Hyundai plans to produce compact SUV, MPV, and sedan models specifically designed for customers in the South East Asian market at the new Indonesian plant, which will incorporate facilities for stamping, welding, painting and assembly.
The company is also currently exploring the production of ASEAN-specific electric vehicles in its Indonesian plant.
Hyundai, with its local partner suppliers, expects to create more than 23,000 new direct and indirect jobs at the Indonesian plant, becoming one of the biggest automotive employers in the Kota Deltamas district.
The plant is anticipated to make an economic contribution worth more than USD 20 billion to the Indonesian economy over its first decade.