The Indonesian government is sending a delegation to South Korea later this month in the hope of securing investment from major automotive companies, including Hyundai Motor.
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Officials from the country’s Investment Coordinating Board (BKPM) and the Ministry of Industry plan to meet the top management of Hyundai Motor with the aim of securing significant investment in vehicle manufacturing.
Indonesia has the fastest growing vehicle market in Asia this year, with volumes rising by 72% to 442,000 units in the first seven months of 2010. It has overtaken Thailand as the largest vehicle market in South-east Asia.
Industry minister MS Hidayat confirmed “we want to make Indonesia an international production base for automobile products and other labour-intensive industries”. The delegation is also expected to visit Hankook Tire, Posco and LG during the visit.
Hyundai Motor currently operates a small assembly plant in Bekasi, east of Jakarta, but the Indonesian government hopes the company will embrace a more comprehensive investment strategy in the country. ““I hope that in future there will be more component production, as well as car assembly”, the minister added.
Last month, the Indonesian government said Hankook Tire is close to agreeing plans for a major tyre plant in Indonesia. Posco, the world’s third largest steelmaker, earlier this year announced a major steel making joint venture with state owned steelmaker Krakatau steel.
