An Indonesian Cabinet member has confirmed Hyundai Motor’s plan to build a new manufacturing factory with a $1 billion investment into the country, according to local media.
Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said he met the carmaker’s de facto leader Chung Euisun on Friday to discuss the investment plan and that the carmaker has secured a plot for construction on western Java Island, Indonesian newspaper Kompas reported Sunday. The planned factory will manufacture electric cars, it added.
The comments came after a meeting between Indonesian President Joko Widodo and Hyundai Motor Group Executive Vice Chairman Chung at Merdeka Palace in Jakarta on Thursday.
Industry Minister Airlangga Hartarto, who accompanied President Widodo for the meeting, said the carmaker is looking for industrial estates around West Java, but the size of the investment is still being discussed, Jakarta Post reported Friday.
Hyundai officials in Seoul denied the reports, reiterating that the plan has not been confirmed. Referring to the Indonesian government’s Industry 4.0 road map, the carmaker said it would collaborate with ride-hailing service Grab and other startups in Indonesia to make inroads into the country’s emerging car-sharing market.
An industry insider in Seoul, quoting market insiders in Indonesia, said Monday that Hyundai’s strategy of joining Widodo’s Industry 4.0 may have opened the door to the market for the South Korean carmaker, adding that it may have given the leader rationale to defy opposition from existing players in the market.
Widodo told Chung that he would fully support Hyundai’s entry into the country.