Hyundai plant given green light in Indonesia

HYUNDAI Motor has entered into a memorandum of understanding(MOU)with the Indonesian government to build a manufacturing plantnear Jakarta, with production tipped to start in the second half of 2021.

The77.6-hectare, $US1.55 billion ($A2.28 billion) facility will be the South Korean brand’s first manufacturing plant in Indonesia, bringing a claimed $US20billion ($A29.46billion) benefit to the Indonesian economy over the next 10 yearswhile creatingmore than 23,000 jobs.

The official documents were signed today at Hyundai’s main manufacturing plant in Ulsan, South Korea, in a ceremony attended by Indonesian presidentJoko Widodo, coordinating minister for economic affairs of Indonesia AirlanggaHartartoand Hyundai Motor Company president and chief executive Wonhee Lee.

Accordingto Hyundai Motor Groupexecutive vice chairman Euisun Chung, the company willcontinue to listenand respond to the Indonesian government’s policieson eco-friendly vehicles while simultaneously targeting and delivering vehicles to new ASEAN markets.

“The establishment of Hyundai Motor’s manufacturing plant in Indonesia has been made possible thanks to the continuous cooperation and support from the Indonesian government,” he said.

When production begins in 2021, officials expect the plant to produce some 150,000 vehicles a year before increasing to 250,000 at full operating capacity.

Specifically designed compact SUVs, compact MPVsand sedans for the South East Asian marketareplanned to be the main focus of the plant,along with the possibility of regionspecific electric vehicles.

Hyundai executives hope to make Hyundai Motor Group the world's third-biggest EV manufacturer by 2025.