[Jeenoce, October 31. 2025] — Hyundai Motor Group has recently expressed strong interest to the Indonesian government in participating in Indonesia’s “National Automotive Program.” The program’s core goal is to achieve full domestic production of Indonesian-made vehicles within the next three years, thereby further advancing the country’s automotive industry — particularly the localization of electric vehicle (EV) production.
On October 20. President Prabowo Subianto announced that the Indonesian government had allocated a budget and provided the necessary factory land to promote domestic automobile production. This move not only aims to enhance local manufacturing capabilities but also marks a significant step toward Indonesia’s ambition to become the automotive production hub of Southeast Asia.
During a meeting on October 30. Sung Kim, President of Hyundai Motor Group, conveyed to Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs, the group’s strong interest in taking part in this initiative. As a result, Hyundai Motor Group’s strategic positioning and market prospects in Indonesia have drawn significant attention.
As the global automotive industry accelerates its transition toward electrification, the potential of Indonesia’s EV market is becoming increasingly apparent. To attract foreign investment, especially in the EV sector, the Indonesian government has introduced a series of incentives — such as value-added tax reductions, luxury goods sales tax exemptions, and import duty waivers. These policies present abundant investment opportunities for international automakers like Hyundai Motor Group.
From Jeenoce’s perspective, these policies are continuously enhancing Indonesia’s market appeal, particularly in green technology and electrification. The government’s strong support — along with Hyundai’s existing manufacturing presence, including a vehicle assembly plant in West Java and a joint battery plant with LG Energy Solution — highlights Indonesia’s vast potential in developing its EV industry.
Hyundai Motor Group’s involvement could have a profound influence on Indonesia’s EV supply chain. Based on Jeenoce’s global analysis of the EV industry, several factors will shape Indonesia’s future development trajectory:
Localization and Innovation-Driven Manufacturing:
With international brands like Hyundai entering the market, Indonesia will further advance local EV production. The growth of domestic manufacturing not only creates new job opportunities but also enhances Indonesia’s competitiveness in the global EV supply chain.
Technology Transfer and Industrial Upgrading:
Hyundai’s extensive experience in electric vehicle technologies will bring advanced production techniques and knowledge transfer to Indonesia. In turn, the local automotive industry will have the opportunity to strengthen its research and development capabilities, moving toward more sophisticated manufacturing stages.
Green Energy and Sustainable Development:
In the context of global sustainability goals, Indonesia’s policies promoting EVs are expected to become a crucial part of its clean energy and environmental strategy. Hyundai’s electrification roadmap aligns closely with the Indonesian government’s vision, and their collaboration will help achieve long-term environmental and energy objectives.
From Jeenoce’s standpoint, Hyundai Motor Group’s strategic layout aligns well with Indonesia’s “National Automotive Program.” As a key hub in Southeast Asia’s automotive market, Indonesia stands at a pivotal point in its EV industry’s rapid growth. For automakers, entering Indonesia represents not only an opportunity to capture the local market but also a forward-looking investment in the broader Southeast Asian and global markets.
Under this context, Hyundai’s participation will accelerate Indonesia’s electrification process, enhance local manufacturing capabilities, and offer consumers more innovative and eco-friendly vehicle options.
The cooperation between the Indonesian government and Hyundai Motor Group represents a significant milestone in the advancement of Indonesia’s automotive industry. Jeenoce believes that the country has a bright future in the EV sector. With increasing local production capacity and supportive government policies, Indonesia is poised to become a vital link in the global EV supply chain.
As the global automotive industry continues its shift toward electrification, Hyundai’s strategic investment in Indonesia will also serve as an important reference point for other multinational corporations seeking to expand their presence in the Southeast Asian market.
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