BYD Maintains Long-Term Investment Strategy in Indonesia
Indonesia’s industrial sector, including the electric vehicle industry, is beginning to feel heavy pressure from rising raw material and component prices driven by global geopolitical conflicts. This problem has a significant impact on an industry that still relies on importing components from abroad.
This pressure is also felt by PT BYD Motor Indonesia, according to Industri. Despite facing global challenges, the automaker from China emphasises its commitment to sticking to a long-term business strategy in the domestic market.
Luther Panjaitan, Head of Public & Government Relations at PT BYD Motor Indonesia, explained that the company continues to monitor developments in world geopolitics as well as domestic economic dynamics that affect production costs.
According to Panjaitan, the rise in prices of key electric vehicle components, most of which are still imported from China, indeed has a direct impact on the company’s production expenditure.
“It does affect fluctuations in the cost of production. But what I can say is that BYD in Indonesia is investing for the long term,” Panjaitan said in the Tangerang, Banten region, quoted on Tuesday (19 May 2026).
Panjaitan added that BYD had actually anticipated a range of market obstacles since the start of its expansion into Indonesia, a step that has become an integral part of its long-term investment plan.
“And up to now we remain positive and confident in the strategy we have, both in terms of products, pricing and the promotions we will carry out,” he said.
In the midst of difficult conditions due to rising operating costs and the rupiah’s depreciation against the US dollar, BYD affirmed that it would not raise the selling price of its electric cars in Indonesia.
The company’s management regards currency fluctuations and rising component prices as still within controllable bounds through a sound business strategy. Through this approach, BYD remains confident in maintaining product competitiveness in the domestic market while sustaining public interest in purchasing.