South Korea’s Hyundai Investment Creates Jobs for 3,500 People, Minister Says
Date 27 November 2019
Following the signing of Memorandum of Understanding (MoU) on Tuesday (26/11) between the Indonesian Investment Coordinating Board (BKPM) and South Korea’s car manufacturer Hyundai Motor at Hyundai Motor Company Factory, in Ulsan, South Korea, Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan said that this is consistent with the Government’s agenda to make Indonesia a production base.
“This is in line with the Government’s agenda to make Indonesia not only a market base but also a production base,” Luhut said.
The Minister added that investment of US$1.5 billion aims to build a car plant in the West Java industrial town of Cikarang.
“Both parties have agreed to develop and manufacture vehicles with new models to meet the needs of Asian and Australian consumers,” said Luhut.
Meanwhile, BKPM Chief Bahlil Lahadalia expressed belief that Hyundai Motor’s investment in Indonesia would provide great added values for the country’s economy, including in creating jobs for around 3,500 people and in the development of training centers, research, and development of electric vehicles.
Bahlil added he would also ask Hyundai to make maximum use of raw materials in the country and cooperate with local entrepreneurs.
“For instance, using car batteries from Morowali in Central Sulawesi province, rubber tires made in Indonesia, so that all electric cars manufactured in Indonesia will use materials produced at home,” Bahlil said, adding that Hyundai Motor’s investment in Indonesia will be carried out in two phases, namely 2019-2021 and 2022-2030.
“In the first phase, Hyundai will focus on building car factories and will export at least 50 percent of the total production phase, and development of electric vehicle factory for the second phase, with 70 percent of its production will be exported,” said Bahlil, adding that Hyundai is expected to start its production in 2021 with a capacity of 70,000 – 250,000 units per year, including manufacturing electric vehicles in the future. (Coordinating Ministry for Maritime Affairs and Investment PR/EN/DNS/ES)
Translated by: Muhardi
Reviewed by: M. Ersan Pamungkas