Progress on the Establishment of BYD and VinFast Electric Vehicle Plants in Subang

KatadataOTO – Manufacturers enjoying tax-free incentives for imported electric cars are trying to fulfill their commitments to the Indonesian government.

Such as by building their own factories in the country. This approach is being taken by both BYD and VinFast.

The production facilities of both manufacturers are located in Subang Smartpolitan, Subang, West Java.

“Two (electric car) companies are building new factories, namely PT BYD Auto Indonesia and PT VinFast Automobile,” said Mahardi Tunggul Wicaksono, Director of Maritime Industry, Transportation Equipment, and Defense Equipment (ILMATAP) at the Ministry of Industry (Kemenperin) in Jakarta, on Monday (25/08).

Photo : KatadataOTO

In his presentation, Tunggul explained that the construction progress of the BYD factory as of May 2025 has reached 45 percent.

This Chinese brand is participating in the imported electric car incentive program with the largest investment, reaching Rp 11.2 trillion.

Once operational, BYD's production facility will be capable of making 150,000 electric cars per year, allowing it to introduce a variety of flagship products.

Meanwhile, the progress of the VinFast factory has reached 77 percent, with an investment of up to Rp 3.5 trillion.

The factory owned by the Vietnamese manufacturer will be capable of producing 50,000 Electric Vehicle (EV) units per year.

For your information, the construction of both the BYD and VinFast factories is targeted for completion by the end of 2025, with operations starting next year.

Once both facilities are fully operational, they will bring positive impacts, such as absorbing thousands of workers.

Thus, many people from Subang and its surrounding areas will be able to work there. This will automatically reduce the unemployment rate.

Not Everyone is Building a New Factory

On the other hand, Tunggul also mentioned that not all electric car manufacturers taking advantage of the import incentives are establishing new factories.