Hyundai Planning Inroads Into Indonesia

Hyundai is eyeing expansion into Indonesia.

The automaker has entered into a memorandum of understanding with the Indonesian government to develop a plant meant to support its growth into ASEAN markets and offset slowing demand in the global automotive market.

The new plant will be located on an 8.35 million-sq.-ft. (775,715 sq.-m) parcel of land in Kota Deltamas (City of Deltamas), an integrated industrial, commercial and residential district outside the country’s capital city, Jakarta.

Hyundai will invest $1.55 billion through 2030 in the plant, including product development and operation costs. The new facility will break ground in December and is expected to begin commercial production in second-half 2021 with an annual capacity of 150,000 units. The automaker expects the plant will be able to build about 250,000 vehicles annually when it reaches full capacity.

Hyundai says the plant will produce compact SUV, compact MPV and sedan models specifically designed for customers in Southeast Asia and include facilities for stamping, welding, painting and assembly.

The automaker says it also will explore production of ASEAN-specific electrified vehicles as it, together with sister company Kia, aims to become the world’s third-biggest EV manufacturer by 2025.

It says the new plant, with local partner suppliers, will create more than 23,000 new direct and indirect jobs and contribute more than $20 billion to the Indonesian economy over its first decade.