Jeong Eui-sun Reaps the Fruits of Indonesia Electric Vehicle Factory

Attendance at Completion Ceremony Delayed by COVID-19
Meeting with President Wido-do Also Planned

In October last year, President Joko Widodo of Indonesia (right) and Hyundai Motor Chairman Chung Eui-sun stand next to the Genesis electric vehicle G80 at an electric vehicle event in Indonesia.

[Asia Economy Reporter Choi Dae-yeol] Chung Eui-sun, Chairman of Hyundai Motor Group, will attend the factory completion ceremony to be held in Indonesia on the 16th. The ceremony, delayed due to COVID-19, is being held belatedly at the factory that was completed earlier this year and is producing locally strategic models. More concrete discussions regarding local electric vehicle production are also expected to take place.

Plans are also underway for a meeting with Joko Widodo, President of Indonesia. If the meeting takes place, it will be the first in five months. According to industry sources on the 14th, Chairman Chung departed for Singapore the day before and plans to inspect the Global Innovation Center being built there and its operational plans before heading to Indonesia. Hyundai Motor built the first complete vehicle factory in Indonesia among the Association of Southeast Asian Nations (ASEAN) member countries. This factory produces the locally customized small sport utility vehicle (SUV) Creta. It shares local strategic models and powertrains made at Hyundai’s factories in Russia, India, and Brazil, and although the name is the same, the exterior differs slightly by region.

Indonesia is considered the largest complete vehicle market in ASEAN. However, until now, many Japanese automakers, centered around Toyota, have built factories throughout Southeast Asia and focused on capturing the local market, making it a region difficult for other foreign companies to enter. As the trend shifts toward electric vehicles, the internal and external atmosphere at Hyundai has also changed. Since sales in China, once considered the largest market, have been sluggish, ASEAN countries centered on Indonesia are now regarded as key markets.

In particular, Indonesia is currently building a joint factory between Hyundai Motor and battery maker LG Energy Solution, and the industry expects it to become a production and supply hub for electric vehicles throughout Southeast Asia. Battery supply is considered a major factor in producing electric vehicles over the next three to four years, so it is highly likely to coincide with the operation timing of the local battery factory. Indonesia holds about 20% of the world’s nickel reserves and is rich in other secondary battery raw materials such as manganese, and the government has set a mid- to long-term goal of becoming a hub country for the electric vehicle industry.

It has been reported that President Joko Widodo’s attendance at this completion ceremony is also under consideration, drawing attention to whether a meeting with Chairman Chung will take place. Last October, President Joko Widodo and Chairman Chung met at a local event and discussed cooperation plans including electric vehicle production. At that time, Chairman Chung wore the traditional batik attire and delivered a congratulatory speech in person, and the Indonesian government responded by selecting the electrified Genesis G80 as the official vehicle for the upcoming Group of Twenty (G20) summit to be held in Bali this October.

This content was produced with the assistance of AI translation services.