in most parts of the world, the Shenzhen-headquartered company is now in pole position when it comes to the electric vehicle race in Indonesia.
According to checks by ST, the area could be in the district of Subang, where basic infrastructure is relatively more developed and where the 2,700ha Smartpolitan industrial estate is being built by a private company. To qualify for these exemptions, foreign EV makers must commit to producing the same number of vehicles locally between January 2026 and December 2027 as what they import from 2024 till end-2025.
Former automotive journalist Ermiel Zulfikar said there is little chance for Tesla to establish a significant presence in Indonesia, let alone compete with BYD, because it cannot make use of the available tax waivers and has higher manufacturing prices. The number of new-energy cars in Indonesia grew by 43 per cent to 12,248 as at end-2023, compared with 8,562 in 2022, according to industry ministry data. Non-battery cars, or internal combustion engine cars, number above 17 million.
The US-China trade war has hurt China’s exports, putting pressure on Chinese manufacturers to lower the prices of cars to secure sales in other markets.
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