Foxconn to Invest USD 8 billion in Indonesia’s Electric Vehicles Sector

March 2022

In the third quarter of this year, Foxconn plans to invest USD 8 billion in Indonesia to manufacture electric vehicles (EVs) and batteries. In addition to the cars, the iPhone assembler company will also develop a plant on 200 hectares of an industrial zone in Batang, Central Java, to produce battery cells, cathode precursor, and communications spare parts.

The company announced that it would collaborate with Indonesia’s investment ministry and other companies to invest in EV-related projects, including battery manufacturing. Indonesia’s state-owned Battery Corporation, PT Indika Energy, and Gogoro, a Taiwanese electric scooter manufacturer, are all part of the cooperation.

This investment plan is also in line with the Indonesian government’s objective to promote EVs to reduce gas emissions by 29% by 2030 and reach zero emissions by 2060. Indonesian President Joko Widodo stated that the government aims to have more than 2 million EVs on the road by 2025, including electric motorbikes, and that by 2030, Indonesia intends to be able to enter the EV export market.

More EV charging stations are being built across the country as part of the endeavor. PT Perusahaan Listrik Negara (PLN), an Indonesian state-owned electricity company, plans to add 40 Public Electric Vehicle Charging Station (SPKLU) units in numerous cities by 2022. At the same time, PT Pertamina, Indonesia’s state-owned oil and gas firm, has begun operating 14 battery switching stations with 212 batteries at seven green public fuel filling stations (SPBUs).

(Sources: Business Times; Xinhua)

Our Services

Orissa International provides consulting services to companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 distributors, resellers, and system integrators, built through advising and guiding more than 5,000 companies with their market expansion into Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines over the last 25 years.