Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that construction of Chinese electric vehicle manufacturer BYD's factory in Subang, West Java has reached 90% completion, with the facility representing an investment of Rp11.2 trillion (approximately $671 million) and designed to produce 150,000 units annually once operational.
Speaking at the Indonesian Chamber of Commerce and Industry National Leadership Meeting on December 4, 2025, Minister Airlangga disclosed that the government has distributed Rp7 trillion in automotive sector incentives over the past two years to accelerate local electric vehicle production, with BYD being among the major recipients committed to establishing manufacturing facilities in Indonesia.
BYD Indonesia's Head of Marketing, PR & Government Luther T. Panjaitan confirmed the Subang Smartpolitan facility remains on schedule to begin local production in early 2026, though final processes including certification, quality control systems, and Indonesian regulatory compliance procedures are still underway before manufacturing can commence.
The automaker currently dominates Indonesia's battery electric vehicle market with 30,670 wholesale units sold from January to October 2025, driven particularly by strong demand for the newly launched city car model Atto 1 which delivered 9,396 units in October alone, demonstrating robust consumer acceptance of BYD's diverse portfolio ranging from the Rp195 million Atto 1 to the approximately Rp750 million Seal sedan.
Under Ministry of Investment Regulation Number 6/2023 amended by Number 1/2024, BYD currently enjoys import duty exemptions for completely built-up vehicles through December 31, 2025, after which manufacturers must fulfill local production commitments under a 1:1 scheme aligned with Local Content Level roadmaps, with bank guarantees subject to liquidation as penalties for non-compliance starting January 2026.
