BYD Subang Factory Begins Operations, Absorbing 5,000 Workers
The BYD factory in Subang, West Java, officially began operations on Thursday (3/9). The facility, which has an annual capacity of 150,000 electric vehicles, has already absorbed approximately 5,000 Indonesian workers.
The factory, valued at IDR 16 trillion, is projected to serve as both a production and export base for BYD within the region. Its presence marks a shift in Indonesia’s position from being merely a market to becoming a vital part of the global electric vehicle supply chain.
Thousands of workers have been absorbed as one of the initial impacts of BYD’s investment. This number has the potential to increase alongside production capacity growth and the involvement of local supplier industries.
Minister of Industry Agus Gumiwang Kartasasmita stated that the commencement of the factory is a significant momentum for the national electric vehicle industry. The government hopes that BYD’s investment will not stop at vehicle assembly but will also help build an industrial chain from upstream to downstream.
“BYD will make Indonesia an export hub,” said Agus during the factory’s inauguration on Thursday (3/9).
Indonesia is being targeted as an export base. The production capacity of the BYD Subang factory reaches 150,000 units per year. A portion of the vehicles produced will be marketed domestically, while the remainder is projected for export markets.
According to Agus, BYD’s local production is a significant development following the company’s strong growth in the domestic market. BYD currently holds approximately 43 per cent of the four-wheel electric vehicle market in Indonesia.
“This position also demonstrates the strong acceptance of BYD products by Indonesian consumers,” he said.
Local Content Requirements (TKDN) are targeted at 60 per cent. BYD products currently meet a Local Content Requirement (TKDN) of more than 40 per cent. The company aims to increase this local content to 60 per cent by 2027.
President Director of PT BYD Motor Indonesia, Eagle Zhao, stated that increasing local content has been part of the company’s commitment since beginning its investment in Indonesia.
“This is our commitment to the automotive industry,” said Eagle Zhao.
The increase in TKDN is expected to expand the involvement of supplier companies and local labour. However, the impact needs to be measured through the number of domestic partners, technology transfer, and the quality of jobs created.
Key facts behind the BYD Subang factory:
Investment value: approximately IDR 16 trillion
Production capacity: 150,000 units per year
Workforce absorbed: approximately 5,000 people
Current TKDN: more than 40 per cent
2027 TKDN target: 60 per cent
BYD market share: approximately 43 per cent