Minister of Industry's Remarks During the Inauguration of BYD's Rp11.7 Trillion Factory in Subang

BYD has officially commenced operations of its electric vehicle production facility in Indonesia. The presence of this factory is vital for positioning Indonesia not merely as an electric vehicle market, but as a production base for the wider region.

Minister of Industry Agus Gumiwang Kartasasmita assessed that BYD’s decision to select West Java as the location for its production facility was a highly appropriate move. The province possesses a strong industrial foundation and serves as a primary pillar of the national economy.

“BYD’s decision to build production facilities in West Java is a very correct choice. West Java is one of the strongest industrial bases in Indonesia. In the second quarter of 2026, the West Java economy grew by 5.73%, which is above the national economic growth average, and it contributes 12.88% to the national GDP, making it the third largest contribution among all provinces in Indonesia,” said Agus during the inauguration of the BYD Indonesia production facility in Subang, West Java, on Thursday (3/9/2026).

West Java’s manufacturing strength also serves as capital for the development of the electric vehicle supply chain. The government is currently encouraging electric-based automotive investments to increasingly absorb local components, ensuring that the impact extends beyond mere vehicle assembly activities.

“From an industrial perspective, West Java holds the first position nationally, contributing 27.32% to the national processing industry and generating a value added of Rp331.16 trillion. The processing industry in West Java is the main sector for the West Java economy, contributing nearly 40% to West Java’s GRDP,” stated Agus.

The growth of electric vehicles domestically is also strengthening the prospects of such investments. The government notes that the national electric vehicle population continues to rise, while sales of four-wheeled electrified vehicles show increasing consumer acceptance.

Agus stated that the government intends for this market growth to proceed alongside the deepening of domestic industry. One of the instruments being prepared is the gradual increase of Local Content Requirements (TKDN), while simultaneously creating space for the local component industry to enter the electric vehicle supply chain.

“The roadmap for Battery Electric Vehicles (KBLBB) increases the minimum TKDN value gradually, specifically 40% this year, 60% during 2027-2029, and 80% by 2030, so that investment does not stop at assembly but increasingly involves the domestic component industry and supply chain,” said Agus.

In a relatively short period, BYD has established a strong position in the Indonesian electric vehicle market. Gaikindo data shows that BYD sales from 2024 through the first semester of 2026 have approached 94,000 units, with its products already achieving a TKDN of above 40%.

For information, this BYD factory was built in the Subang Smartpolitan Industrial Park, Subang, West Java, with an investment value of Rp11.7 trillion. The facility, which has a production capacity of up to 150,000 units per year, covers an area of up to 126 hectares.

Currently, there are six BYD electric cars sold domestically: the Seal, M6, Dolphin, Atto 3, Sealion 7, and Atto 1. These six models are currently imported as Completely Built Up (CBU) units from China.