Chinese investor injects Rp15 trillion to develop EV industry in Kendal

A Chinese investor has injected investment funds worth approximately Rp15 trillion for the development of the electric vehicle (EV) industry in the Seafer Industrial Estate (KIS), Kendal Regency, Central Java. The investment injection was marked by the signing of a cooperation agreement between PT KIA Kendal and PT New Generation Mobility (NGM), as well as between PT NGM and PT China State Construction Engineering Corporation (CSCEC). The signing was witnessed directly by Central Java Governor Ahmad Luthfi, Deputy Governor Taj Yasin Maimoen, and Kendal Regent Dyah Kartika Permatasari at the Central Java Governor’s Office on Monday. The three companies will work together to develop electric vehicle products, which is projected to absorb up to 10,000 workers. Central Java Governor Ahmad Luthfi stated that investment activity in Central Java continues to grow amid international geopolitical conditions and fiscal pressures. He said the investment is expected to create significant job opportunities for the surrounding community. According to him, the investment also unites the electric vehicle industry and renewable energy. “This investment is already directed towards renewable industrial technology. The Central Java Provincial Government will provide tax incentives for industrial estates that adopt renewable energy,” he said. President Director of PT Kawasan Industri Seafer (KIS) Kendal, Bryan W Sudarwo, said the investment will grow an industrial estate focused on the EV industry, from batteries and tyres to spare parts for commercial electric vehicles and electric motorcycles. “Everything is integrated. We will develop all of this with the blessing of the Governor and Regent, to support employment absorption and overall economic growth,” he said. He added that the development of KIS Kendal is projected to absorb around 10,000 workers, with the main priority remaining local and surrounding workers. “We prioritise local workers. Definitely. There will be a technology transfer later. We also encourage the Domestic Component Level (TKDN) to be above 50 percent, so we use all local resources,” he said. Representative of PT NGM, Hadi Hartanto, said Central Java was chosen for investment because of Java Island’s centrality and the situation which is always maintained and conducive. “Perhaps it’s fate. Then social security, in Central Java it is safer and more peaceful. Also the existence of the Kendal Special Economic Zone (KEK) which attracts many investors, as well as good licensing facilitation in Central Java,” he said. He assessed that the EV industry in Indonesia has great potential in the future, so it must be integrated and consider downstreaming, both in terms of motors, electricals, and batteries. “These three things must be strong if we want to drive the transformation to electric vehicles,” he said.