S Korea’s Hyundai to expand electric car business, R&D in Indonesia

S Korea’s Hyundai to expand electric car business, R&D in Indonesia
Banner: President Joko Widodo received the Executive Chairman of the Hyundai Motor Group, Chung Eui-sun, at Lotte Hotel, Seoul, on Thursday (July 28, 2022). (The Indonesian Presidential Secretariat)
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“(Hyundai) will also take part in investing in IKN (Indonesia’s prospective new capital city. This is something positive.”

 

Jakarta (Indonesia Window) – South Korean car company Hyundai Motor Company plans to expand its business to electric cars, as well as enhance research and development (R&D) in Indonesia.

This was conveyed by the Executive Chairman of the Hyundai Motor Group, Chung Eui-sun, to Indonesian President Joko Widodo (Jokowi) at the Lotte Hotel, Seoul on Thursday (July 28).

In addition to expanding the business and the company’s research and development, the Chairman of Hyundai also expressed his interest in participating in investment in the development of Indonesia’s prospective new capital city (IKN), Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia said in his statement after the meeting as quoted from the website of the Indonesian Cabinet Secretariat.

“(Hyundai) will also take part in investing in IKN. This is something positive,” he said.

Previously, the Ministry of Investment signed a memorandum of understanding with a South Korean steelmaker headquartered in Pohang, POSCO, South Korea.

In addition to Hyundai and LG, Bahlil said the fourth largest steelmaker in the world is interested to invest in IKN.

Thus, there have been three companies that have expressed interest in investing in the IKN development.

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Besides meeting with the Executive Chairman of the Hyundai Motor Group, President Jokowi also spoke with the CEOs of a number of South Korean companies.

During the meeting, the CEOs responded to the investment climate in Indonesia which was considered very conducive.

Nevertheless, the head of state asked investors not to hesitate to convey the obstacles they might face in the field to the ministers or even directly to him.

The President said that no serious complaints had been submitted to him, but still emphasized that if investors found problems in business implementation, they could report to the Minister of Investment or the Coordinating Minister of Maritime and Investment Affairs.

Furthermore, if the problem cannot be resolved through the two ministerial officials, whether related to licensing, immigration or others, investors can resolve it directly through the president.

On this occasion, President Jokowi said that currently the Indonesian government continues to simplify the rules with the omnibus law/the Job Creation Law.

“This is a structural reform carried out by Indonesia in order to provide as much investment opportunities as possible,” he said.

To the CEOs, the president also expressed his gratitude for the investments that have been made, while appreciating the trend of South Korean investment in the country which continues to increase significantly.

“Now South Korea is the sixth largest investor in Indonesia. This is a very good achievement and we hope that South Korea can enter the top three in Indonesia,” the head of state said.

Furthermore, the president explained that the Indonesian economy is currently in good condition. Indonesia’s economic growth in the first quarter of this year stood at 5.01 percent, while inflation could still be controlled at the level of 4.3 percent.

“Indonesia’s trade surplus in the first half of this year reached 24.8 billion U.S. dollars, a very big jump from us. This is also a lot because of the support from all of you, especially those with an export orientation,” he noted.

Reporting by Indonesia Window

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