Indonesian state-owned defense company PT Pindad has officially partnered with South Korean automotive manufacturer KG Mobility (formerly Ssangyong Motor) to collaborate on developing and manufacturing vehicles in Indonesia, including a "national car" and electric buses. The two companies signed a Heads of Agreement (HoA) at PT Pindad's headquarters in Bandung, West Java, on Thursday, May 8, 2025.
PT Pindad (Persero) has a long and storied history in Indonesia, with origins dating back to a Dutch colonial-era military equipment workshop established in 1808. Officially becoming PT Pindad (Persero) in 1983, it is a state-owned enterprise primarily focused on manufacturing military and security products. Its extensive portfolio includes a wide range of armaments such as assault rifles, sniper rifles, pistols, and various types of munitions. Beyond firearms, Pindad is also a key producer of military vehicles like armored personnel carriers (e.g., the Anoa) and tactical vehicles (e.g., the Komodo and Maung). In addition to its defense-related activities, Pindad also engages in the production of commercial products, including industrial machinery, railway equipment, and commercial explosives, playing a vital role in supporting Indonesia's defense capabilities and contributing to its industrial sector.
KG Mobility (KGM), based in South Korea, has a rich automotive history that began as Ha Dong-hwan Motor Workshop in 1954, later becoming Dong-A Motor. The company was rebranded as SsangYong Motor Company in 1988 after being acquired by the SsangYong Group. Over the decades, SsangYong Motor became known for its robust sport utility vehicles (SUVs) and 4x4 capabilities, with notable models including the Korando, Musso, and Rexton.
The company has undergone several ownership changes, including periods under Daewoo Motors, SAIC Motor, and Mahindra & Mahindra. In 2022, the KG Group consortium acquired SsangYong Motor, leading to its rebranding as KG Mobility in 2023. This change signaled a strategic shift towards future mobility solutions, including a focus on electric vehicles (EVs), autonomous driving technologies, and software-defined vehicles, while continuing to build on its legacy of producing durable and competitively priced SUVs and utility vehicles for both domestic and international markets.
The collaboration aims to expand the scale of PT Pindad's ongoing national car and electric bus production project, with a target capacity of 200,000 units. Under the agreement, KG Mobility will provide support in vehicle product evaluation, technology, and engineering.
This partnership is a significant step for Indonesia's ambition to develop its domestic automotive industry and produce a national car. It also marks an expansion of existing cooperation, as KG Mobility has previously exported Rexton SUV knock-down (KD) kits to Indonesia for local assembly by Pindad. In 2024, 1,060 Rexton KD units were exported, with plans to increase this to 3,000 units in 2025. The locally assembled Rexton has been utilized for specific purposes, including as military vehicles. Pindad's existing tactical vehicle, the Maung, has also incorporated components from Ssangyong.
The scope of the new agreement is comprehensive, covering:
- Joint Development and Production: Focusing on vehicles for the national car project and electric buses.
- Technology Transfer: KG Mobility will share its technological expertise with PT Pindad.
- Component Procurement and Development: The partnership will involve the sourcing and development of vehicle components locally.
- After-Sales Service: Plans include establishing a robust after-sales service network.
- Intellectual Property: Each company will retain exclusive licenses for its own technology.
KG Mobility views Indonesia as a key market with significant growth potential, being the largest automotive market in Southeast Asia. This partnership is part of KG Mobility's strategy to expand into emerging markets, leveraging its product competitiveness and marketing strategies.
For PT Pindad, the collaboration is seen as a strategic move to enhance its capabilities in vehicle manufacturing, support national industrial self-reliance through technology transfer, and contribute to the development of Indonesia's electric vehicle ecosystem. The Pindad Maung vehicle has been under consideration as a candidate for the national car, with efforts to develop a civilian version and transition towards electric variants. The timeline for the mass production of vehicles developed specifically under this new HoA with KG Mobility is yet to be announced in detail, though PT Pindad has been working towards certifying its Maung for mass production.
The signing ceremony was attended by KG Mobility Chairman Kwak Jae-sun and PT Pindad CEO Sigit P. Santosa, who both expressed optimism about the strategic importance and potential of this long-term collaboration for both companies and for the bilateral relationship between Indonesia and South Korea.
