Foreign Investors Inject Rp 15 Trillion into Central Java for EV Development
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, Vice Governor Taj Yasin Maimoen, and Kendal Regent Dyah Kartika Permatasari at the Governor’s Office today.
Ahmad Luthfi stated that amidst international geopolitical conditions and fiscal pressures, investment activity in Central Java continues to grow. He expressed hope that this investment would create employment opportunities for the surrounding community. He explained that 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 implement renewable energy,” Ahmad Luthfi said in a written statement on Monday (15/6/2026).
Meanwhile, President Director of PT Kawasan Industri Seafer (KIS) Kendal, Bryan W Sudarbo, said the investment from PT NGM and PT CSCEC will develop an industrial estate focused on the electric vehicle industry. This includes batteries, tyres, and spare parts for commercial electric vehicles and electric motorcycles.
“Everything is integrated. We will develop this with the blessing of the Governor and the Regent, in order to support employment absorption and overall economic growth,” he said.
Bryan added that the development of KIS Kendal is projected to absorb around 10,000 workers. The main priority remains the local workforce and those from surrounding areas.
“We prioritise local workers. That is certain. Later there will be a transfer of technology. We are also pushing for the Domestic Component Level (TKDN) to be above 50 per cent, so we will use all local resources,” he said.
Representative of PT NGM, Hadi Hartono, said Central Java was chosen as the investment destination because of Java’s centrality. Additionally, the region’s maintained conduciveness was a key factor.
Hadi explained that the EV industry in Indonesia has great potential in the future. Therefore, the EV industry must be integrated and consider downstream processing, covering motors, electrical systems, and batteries. These three aspects must be robust to drive the transformation to electric vehicles.
“Perhaps it was meant to be. Then there is social security; Central Java is safer and more peaceful. There is also the Special Economic Zone (KEK) in Kendal, which attracts many investors, and the ease of licensing in Central Java,” he concluded.